Private Equity in Brazil: A Comparative Perspective
Journal of Private Equity, 2005
14 Pages Posted: 20 Sep 2014
Date Written: November 10, 2005
This paper analyzes the evolution of the private equity and venture capital industries in Brazil, using the U.S. market as an ideal type. The main challenges faced by this sector in Brazil are the volatility of the economy, a lack of seed capital, and the illiquidity of capital markets, which make exit strategies through initial public offerings problematic. On the other hand, the decreasing level of real interest rates and the recent changes in the regulatory framework are the two main factors that bode well for the future growth of the sector. As a result, the authors believe Brazil will become one of the most important markets for private equity by the end of the decade.
Keywords: Private Equity, Brazil, Capital Markets
JEL Classification: F30, G10
Suggested Citation: Suggested Citation