Latin American advisors at Citywire's Latin America Retreat in Chile are showing a strong preference for private markets investments. However, they are also exercising caution in their broader portfolios by including positions in US equity and investment grade bonds. This approach reflects a balance between seeking higher returns through private markets and mitigating risk through more traditional investments.
The Latin Lawyer M&A Roundtable discussed the current state of the M&A market in Latin America, focusing on Argentina, Brazil, Colombia, and Mexico. Despite concerns about global recession and inflation, the region has fared better than expected in terms of M&A activity. Factors such as high inflation, foreign exchange regulations, and geopolitical issues have impacted the market, but there have been pockets of interesting dealmaking in each country. Argentina has seen significant investment in the retail, oil and gas, and mining sectors. Brazil has experienced growth in cross-border transactions, inbound investments, and consolidation in industries like banking, healthcare, and retail. Mexico has seen strategic acquisitions, opportunistic acquisitions, and investments in the fintech and pharma sectors. Colombia has faced uncertainty due to political and geopolitical issues, but M&A activity has continued, including hostile takeovers. Europe has shown interest in investing in Latin America, particularly in strategic acquisitions and private equity. Nearshoring opportunities have been discussed, with Mexico being a strong contender due to its proximity to the US. Financing availability has been impacted by the conservative approach of banks and the slow-down in lending, but private equity funds still have dry powder to deploy.
Latin American advisors prioritize private markets investments while maintaining a cautious approach with US equity and investment grade bonds. The M&A market in Latin America has shown resilience despite concerns about recession and inflation. Deal activity has varied across countries, with Argentina seeing significant investment in retail, oil and gas, and mining sectors. Brazil has experienced growth in cross-border transactions and consolidation in banking, healthcare, and retail. Mexico has seen strategic acquisitions in fintech and pharma, while Colombia has faced uncertainty but continued with M&A activity. Europe has shown interest in strategic acquisitions and private equity investments in Latin America. Nearshoring opportunities and financing availability have also been discussed.
The International Centre for Settlement of Investment Disputes (ICSID) has seen a significant increase in arbitration cases in Latin America. The region has been a major contributor to ICSID's caseload, with countries like Argentina and Venezuela accounting for a large number of cases. The historical background of ICSID and its rise in prominence in the 2000s due to increased global trade and private investments are discussed. The challenges faced by ICSID in handling cases with similar facts, resulting in inconsistent arbitral awards and annulment decisions, are highlighted. Specific cases from Argentina's economic crisis and Venezuela's nationalizations are explored to illustrate these issues. However, in recent years, the perception of ICSID in Latin America has improved, with countries like Peru, Colombia, and Mexico having the most cases against them. These cases are typically not the result of sweeping policy changes but rather specific government measures related to the circumstances of the investment. The potential future challenges for ICSID in Latin America, including political shifts and COVID-19-related measures, are also discussed.
Manchester-based litigation finance firm, IQuote, has signed a €25m deal to support Spanish legal tech company Cartel.es. The funding will help Cartel.es expand across Europe and increase access to justice. Cartel.es, which specialises in handling claims related to cartel price fixing, was founded to tackle the vehicle cartel price-fixing scandal in Spain. The scandal involved 23 vehicle manufacturers from 2006-2013 and impacted about 9.7 million consumers. IQuote's CEO, Craig Cornick, stated that the investment will make justice a tangible reality for those in Spain and beyond. Cartel.es has invested in proprietary technology to assess and quantify each claimant before court proceedings, enabling faster resolutions. The co-founder and Chief Investment Officer of Cartel.es, Adam Peake, expressed excitement about partnering with IQuote and their expertise in complex legal matters. IQuote Limited, founded in 2016, specialises in legal asset and opex capital loans and aims to bridge the gap between individuals and their right to legal resource.
HTwenty is a cross-border venture capital fund specializing in FinTech, marketplaces, and software startups, mostly in the B2B space, in the US and Latin America. The firm was founded by Daniel Lloreda, who moved to the US from Colombia at the age of 15. HTwenty aims to help local entrepreneurs and grow the startup economy in Latin America, as well as propel the careers of Latinx entrepreneurs. The firm focuses on B2B, asset-light companies in the pre-seed and seed stages of funding, particularly in the Latin American market. HTwenty differentiates itself by its presence in both the Latin American and US Hispanic markets, and its passion for working closely with entrepreneurs. The firm has raised $62 million for its second fund and has invested in companies like Influur, a platform connecting social media influencers with brands, and Felix, a FinTech platform for sending money between the US and Latin America. HTwenty's future goals include building relationships with entrepreneurs, increasing its relevance in the Latin American and US Hispanic markets, and establishing more B2B businesses in Latin America. [2a737446]