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Private Equity and Venture Capital in Brazil: An Analysis of its Recent Evolution

17 Pages Posted: 1 Feb 2012 Last revised: 18 Apr 2014

Antonio Gledson De Carvalho

Fundacao Getulio Vargas School of Business at Sao Paulo

Humberto Gallucci Netto

Fundacao Getulio Vargas School of Business at Sao Paulo

Joelson Oliveira Sampaio

Getulio Vargas Foundation (FGV), Sao Paulo School of Economics, Students

Date Written: January 31, 2012

Abstract

This article focuses on the main idiosyncrasies of the PEVC in Brazil and its evolution from 2004 to 2009. The main idiosyncrasies are the participation of investors in the investment process, absence of leveraged buyouts, shared control and use of special rights to compensate for the absence of a controlling stake. The main changes observed are the increase of private equity investments vis-à-vis venture capital, of the efficiency of managers in the selection process, of the use of special rights to compensate for the lack of control in the portfolio companies such as veto power, of the use of arbitration panels for the resolution of conflicts, and of the participation of limited partners in the investment process.

Keywords: private equity, venture capital, Brazil

JEL Classification: G24

Suggested Citation

De Carvalho, Antonio Gledson and Gallucci Netto, Humberto and Sampaio, Joelson Oliveira, Private Equity and Venture Capital in Brazil: An Analysis of its Recent Evolution (January 31, 2012). Available at SSRN: https://ssrn.com/abstract=1996729 or http://dx.doi.org/10.2139/ssrn.1996729

Antonio Gledson De Carvalho (Contact Author)

Fundacao Getulio Vargas School of Business at Sao Paulo ( email )

R. Itapeva, 474 - 7o. andar
Sao Paulo 01313-902
Brazil
+5511 3281-7767 (Phone)

Humberto Gallucci Netto

Fundacao Getulio Vargas School of Business at Sao Paulo ( email )

R Itapeva, 474 11º. andar
São Paulo, São Paulo 01332-000
Brazil

Joelson Sampaio

Getulio Vargas Foundation (FGV), Sao Paulo School of Economics, Students ( email )

Rua Itapeva 474 s.1202
São Paulo
Brazil

HOME PAGE: http://eesp.fgv.br/

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