Private Equity in Uruguay

Economic stability, a growing middle class and disposable incomes are magnets for Uruguay private equity.

For Argentines, Brazilians and expat retirees, Uruguay has always been a good place to visit your money. Now global private equity firms are waking up to the opportunities and upside of investing in one of Latin America’s most stable and transparent markets.

Uruguay Is On The Radar Of Powerful Investment Funds is the headline of Laura Lomando’s article in El Observador which lists “economic growth” and “clear rules of the game” as two of the most powerful pro-Uruguay magnets attracting record levels of private equity and venture capital from Argentina, Brazil, Europe and the US.

In Uruguay, the most sought after sectors for private equity and venture capital investments include retail, agribusiness, raw materials, tourism and health care among others. The author cites a laundry list of recent private equity deals in Uruguay including the acquisition of Farmashop and Hoyts Cinemas (Linzor Capital), the sale of Nuevo Banco Comercial to Soctiabank (Advent) and the 2012 launch of the GAP in Uruguay (JH Partners).

And the deals don’t stop at the Montevideo city limits. Agribusiness funds investing in Uruguay include Argentine giants like Pampa and Adecco, dozens of academic funds including Harvard University, Global Forest Partners and several Canadian and European funds investing in Union Agriculture Group, writes Lomando.

Beyond agriculture, the country’s interior holds tremendous upside potential in the retail and hospitality sectors in historically underserved markets like Rivera and Salto where new hotels and shopping centers are attracting record private investment.

Linzor Capital director Alfredo Irigoin says the keys that have always made Uruguay attractive are the country’s “economic stability and the rapid growth of Uruguay’s middle class and their disposable incomes.” (Full Story in Spanish)

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