GP Investments to start $1.5 billion fundraising effort -sources
By Guillermo Parra-Bernal
RIO DE JANEIRO, April 8 (Reuters) - GP Investments Ltd, the Brazilian firm that financier Jorge Paulo Lemann helped found two decades ago, may announce plans to raise over $1.5 billion for four funds involved in private equity, real estate and infrastructure investments, two sources with knowledge of the plan said.
Filings with the U.S. Securities and Exchange Commission could take place as early as this week since the private-equity firm plans to tap U.S.-based investors, said the sources, who requested anonymity because the plans remain private. A public relations executive managing the GP's media affairs declined to comment.
GP Investments aims to raise about $800 million from investors for a private-equity fund, the sources said.
Around $300 million could be obtained for a fund that invests in Brazilian infrastructure companies and projects, where a dearth of capital is worsening as the economy slows and state-controlled banks pare back lending, they added.
The remainder could be sought for two real estate-related funds, the sources said.
The plans come on the heels of a robust year for fundraising by buyout firms with a focus on Latin America. Advent International Corp, Blackstone Group LP's partner in Brazil and over 50 firms raised a record $10.4 billion for their Latin American investments last year, according to Latin American Private Equity and Venture Capital Association data.
Sovereign wealth funds, local and global pension funds, as well as institutional investors, are deploying more money into Brazil-related investment vehicles, industry executives told Reuters this week. As the life cycle of some of its investment vehicles approach their end, new money could boost GP Investments' ability to buy new assets, the sources added.
"Usually after a strong year of fund raising comes another that's not so good, but these guys have a strong track record, which should help," said one of the sources. Continuación...