Latin America’s rapidly changing regulatory environment is enabling greater institutional investment in private  equity as asset class, both domestically and abroad.

The pension industry in Latin America has been  a key source of allocations for global managers  and fund sponsors over the years, and promises to  grow in importance as the size of these privatized  social security systems quickly expands.

After almost ten years of launching their  offshore alternative programs, pension funds  in Chile, Peru and Colombia are working  together with regulators looking for ways to  increase limits and, therefore, allocation to  alternative investments.

Institutional Investors in these markets have  committed capital to different strategies,  including large buyout, fund of funds and  secondaries. In some of the markets, private  debt, real estate and mid-market PE funds  have also been considered, showing a greater  level of sophistication in their Private Equity  programs.

Family Offices dominate the commitments to  international private equity in Central America  and Mexico.

Total capital raised for international PE in these  regions is highly concentrated in Family  Offices 100+ HNWI and family offices  actively investing in Private Equity. Many of the  families are based outside of the region,  mainly in Texas, Florida, New York and Boston

Regulatory developments in Brazil and Mexico,  which would open up a potential market worth  in excess of $300 billion for international fund  managers.

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