Advent International raises $2 billion for seventh private equity fund dedicated to Latin America
- Solidifies Advent’s position as the longest-established private equity investor in the region
BOSTON, September 29, 2020 – Advent International, one of the largest and most experienced global private equity investors, today announced that it has completed fundraising for Advent Latin American Private Equity Fund VII (“LAPEF VII” or the “Fund”). LAPEF VII received $2 billion in commitments from institutional investors worldwide.
The new fund brings Advent’s total capital raised for Latin America since 1996 to approximately $8 billion—the most of any private equity firm operating in the region.¹ Including its Global Private Equity IX and Advent Tech funds closed last year, Advent has raised $22 billion in private equity capital in the last 16 months.
“LAPEF VII is a testament to our strong track record in Latin America, established over six generations of funds and several economic and private equity cycles,” said Patrice Etlin, a Managing Partner at Advent in São Paulo and member of the firm’s global Executive Committee. “We continue to see compelling investment opportunities in the region, driven by attractive valuations and positive, long-term market dynamics. We look forward to partnering with mid-sized to large companies and helping them grow by applying our deep sector expertise, global platform and world-class operational resources.”
Continuing the same pan-regional, sector-focused strategy as its predecessors, LAPEF VII will invest primarily in Brazil, Colombia, Mexico and Peru, and may also invest opportunistically in nearby countries including Argentina and Chile. It will focus on five sectors where Advent has significant experience and knowledge: (1) business and financial services; (2) healthcare; (3) industrial; (4) retail, consumer and leisure; and (5) technology. The Fund will have the flexibility to deploy capital across various deal types—including buyouts, corporate carve-outs and growth equity transactions—and sizes, with equity investments ranging from $50 million to $300 million or more.
“Latin America is a large market with a rapidly growing middle class, fueling strong demand for value-added products and services,” said Juan Pablo Zucchini, a Managing Partner at Advent, also based in São Paulo. “Additionally, many Latin American sectors remain highly fragmented, and a large percentage of mid-sized businesses are family-owned. This presents opportunities to create value by consolidating industries, professionalizing businesses and accelerating growth.”
A broad base of institutional investors participated in LAPEF VII, including public and corporate pension funds, endowments and foundations, funds of funds, sovereign wealth funds, family offices and other financial institutions. The majority of the capital came from limited partners in LAPEF VI, with Advent admitting a select number of new strategic investors into the Fund as well.
“LAPEF VII reinforces Advent’s leadership position in Latin America and underscores our continued commitment to the region,” said David Mussafer, a Managing Partner at Advent in Boston and Co-Chair of the firm’s Executive Committee. “We appreciate the continued support from our diverse base of institutional investors and are delighted to welcome select new investors to the LAPEF program.”
ADVENT’S LEADERSHIP POSITION IN LATIN AMERICA
The new fund solidifies Advent’s position as one of the leading and longest-established private equity investors in Latin America. Over the past 24 years, the firm has invested or committed $6.8 billion in 64 businesses across the region and fully exited its positions in 43 companies, including nine IPOs. Today, its current Latin American portfolio companies employ more than 80,000 people. The firm has established the largest dedicated private equity team in the region, comprising nearly 40 investment and portfolio support professionals working out of offices in Bogotá, Lima, Mexico City and São Paulo.
In recognition of its achievements, industry participants and editors of Private Equity International magazine have named Advent “Firm of the Year in Latin America” for 11 of the past 15 years.
ADVENT’S VALUE CREATION APPROACH
In Latin America, as in other regions, Advent employs a resource-intensive, operational approach to investing. The firm partners with management teams to build long-term value in companies through operational improvements, organic growth and acquisitions, both domestically and internationally. To help drive these initiatives, Advent has established a large network of resources in the region. This includes 39 investment and portfolio support professionals and 30 external operating partners and operations advisors—senior executives with deep sector and functional expertise.
By applying these capabilities, Advent has helped Latin American businesses achieve significant growth and value. Since 2006, companies that Advent has owned for at least a year have increased revenue and EBITDA on average by 14% and 13% annually during its investment. The combined enterprise value of the firm’s Latin American portfolio has doubled to $41 billion under its ownership.
RECENT INVESTMENTS AND EXITS IN LATIN AMERICA
Advent’s recent investments in Latin America include Nubank, the world’s largest independent digital bank; CI&T, a global provider of digital transformation services; Prisma Medios de Pago, Argentina’s leading payments company; Grupo BIG (formerly Walmart Brazil), the third-largest food retailer in Brazil; Enjoy, a hotel and casino operator in Chile, Uruguay and Argentina; Grupo Farmacéutico Somar, a leading generic drug manufacturer in Mexico; YDUQS, the second-largest post-secondary education company in Brazil; and Canvia, a leading IT services provider in Peru.
Recent exits in Latin America include Easynvest, the largest digital investment platform in Brazil; Lojas Quero-Quero, the largest construction materials retailer in Brazil by number of stores; Ocensa, Colombia’s largest crude oil pipeline; Grupo Biotoscana (GBT), a leading biopharmaceutical company in Latin America; International Meal Company (IMC), one of the region’s largest operators of airport, road-side and casual dining restaurants; Alianza Fiduciaria and Alianza Valores, the leading independent trust and asset management company in Colombia; Faculdade da Serra Gaucha (FSG), a private education company in southern Brazil; Terminal de Contêineres de Paranaguá (TCP), the second-largest container terminal in Brazil; and Grupo Fleury, Brazil’s largest provider of premium medical diagnostic services.
In addition to LAPEF VII, Advent is investing its ninth global private equity fund, GPE IX, focused on buyouts across Europe, North America and Asia; and a dedicated technology fund, Advent Tech.
This press release is not an offer or solicitation of an offer, or an invitation or inducement, to invest in any Advent International fund. No person may invest in any Advent International fund except in accordance with and subject to the terms of the applicable fund documentation and applicable law.
¹ Source: LAVCA – The Association for Private Capital Investment in Latin America
ABOUT ADVENT INTERNATIONAL
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 360 private equity transactions in 41 countries, and as of June 30, 2020, had $58 billion in assets under management, excluding the $2 billion raised for LAPEF VII. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology. After more than 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
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Valeria Marulanda Dávila
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BioDuro and Sundia Partner as an Industry Leading Contract Research, Development and Manufacturing Organization
Investment led by Advent International creates premier services company with over 2,000 employees and 10 facilities in China and US
San Diego and Shanghai, 25 September 2020 – BioDuro, a global life science research and development organization backed by Advent International (“Advent”), and Sundia, a leading contract research and manufacturing organization, today announced that they have partnered to create one of the largest CRDMOs (contract research, development and manufacturing organizations) with major operations in China and the US. The combined company will operate as BioDuro-Sundia, providing fully integrated drug discovery, development and manufacturing for both API (Active Pharmaceutical Ingredients) and drug products. Advent led a majority investment in Sundia, with Bridgewest Capital as co-investors. Financial terms were not disclosed.
BioDuro-Sundia has a combined talent pool of over 2,000 employees across 10 global sites, enabling operational scale and integrated capabilities that provide its biopharma customers a single end-to-end solution from early stage drug discovery to late stage manufacturing. With strong financials and committed investment, BioDuro-Sundia is already expanding operations to bolster its strategic locations, including two new sites in China — an R&D base in Wuxi City and a manufacturing center in Bengbu – as well as capacity to add more than 1,000 employees over the next two years.
Together, the new partnership’s teams, facilities and investments are well positioned to provide continuity of services to their combined clients ensuring more success, faster timelines, and higher confidence to achieving drug discovery and development milestones.
BioDuro-Sundia’s Board of Directors includes BioDuro’s existing Board with the addition of Cathy Yen, Chairman of Sundia. Mrs. Yen is an independent director, joining hands with industry veterans such as David Preston, Kewen Jin and Masood Tayebi.
Jim Li, CEO of Sundia, joins the senior management team of BioDuro-Sundia as President of China Global CMC (Chemistry, Manufacturing and Controls) Solutions, with responsibility towards critical growth in that market, including build-out of the company’s late stage GMP and non-GMP API scale-up capabilities. Mr. Li will report directly to Cyrus K. Mirsaidi, CEO of BioDuro-Sundia.
“BioDuro and Sundia share the same core values that include respect, teamwork and tenacity,” said Cyrus K. Mirsaidi, CEO of BioDuro-Sundia. “Together, we help our biopharma partners research and develop medicines that improve the lives of patients, as we keep our clients and their patients at the core of every project we undertake. This common cause makes the BioDuro-Sundia partnership a great fit — not only for our employees, who will benefit from an extended global reach and new career opportunities, but also for our partner clients whom we help every day to speed up their precious programs to the clinic and the patients in need.”
David Preston, Chairman of BioDuro-Sundia, commented, “China represents the world’s fastest growing biopharma sector. We are thrilled to be partnering with such a well-established provider in Sundia, which already has extensive discovery and CMC offerings in China. The combined company gives us the scale, leadership, capability and talent required to outpace growth in this rapidly accelerating market. It is an example of truly being stronger together.”
Cathy Yen, Director of BioDuro-Sundia, said, “We are greatly looking forward to this new venture with BioDuro combining our discovery, R&D and CMC expertise to provide customers with a highly competitive and innovative end-to-end CRDMO solution. As a service provider, this kind of productivity creates a ripple effect to the benefit of the whole biopharma sector. It enables us to accelerate timelines for hundreds of companies and to help bring medicines to patients faster for countless programs.
Andrew Li, Managing Director and Head of Greater China of Advent, remarked, “BioDuro and Sundia both have strong track records in providing quality CRDMO services to the world’s leading pharmaceutical and biotech customers, and we believe this new partnership will achieve higher value outcomes for all stakeholders.
“This deal plays to Advent’s strong track record in the healthcare sector, our Asian regional investing and our ongoing support of Chinese pharmaceutical and healthcare businesses. We look forward to helping BioDuro-Sundia grow further and to working closely with its experienced management teams to expand the firm’s Chinese and global footprint.”
Advent has significant investment experience in the healthcare industry. Over the past 30 years, the firm has invested US$8.6 billion in 47 companies in the sector across 16 countries worldwide. In addition to BioDuro, recent pharmaceutical and CRO investments include Bharat Serums and Vaccines, ICE Group, Zentiva, Somar and Syneos Health, Inc. (NASDAQ: SYNH).
CEC Capital Group is serving as the exclusive financial advisor to Sundia.
Founded in 2004, Sundia is a well-established pre-clinical contract research and manufacturing organization (“CRMO”), which has built an integrated drug discovery and development platform from synthetic and medicinal chemistry, DMPK and in vitro/in vivo biology, process chemistry, formulation to analytical as well as API/starting material manufacturing of small molecules. The company has long-term collaboration with several top 10 global pharmaceutical companies and has served over 250 clients worldwide. It has a strong reputation in China for possessing an experienced technical and regulatory team who advise clients on IND submissions. Headquartered in Shanghai, Sundia currently has four R&D facilities in Shanghai, one in Shijiazhuang and one in Taiwan.
For more information visit www.sundia.com
BioDuro, an Advent International portfolio company, is a leading global life sciences research and development organization that provides biopharmaceutical clients and partners with comprehensive, fully integrated drug discovery and development services, from lead development and IND-enabling studies to GMP manufacture of drug product for clinical trials. Core expertise includes small and large molecule discovery, development and scale up, combined with unique technology platforms such as bioavailability enhancement of insoluble compounds. The company has 4 global sites: headquarters in San Diego, California and 3 major operations in Beijing, Shanghai and Jiangsu, China. BioDuro’s integrated China and US teams afford partners with the benefits of a truly global and seamless operation, significantly accelerating discovery and de-risking development to create higher value outcomes.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 350 private equity transactions in 41 countries, and as of June 30, 2020, had $58.4 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. After 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
About Bridgewest Capital
Founded in 1999, The Bridgewest Group is a closely held investment company that seeks to create long term value through application of superior industry knowledge, operational expertise and significant financial resources to attractive investment opportunities. The Group structures its global investments across four functional areas including private equity, real estate, capital markets and financial services. The Group’s private equity investments are primarily in biotech, wireless communications, infrastructure for IoT, and semiconductor. Bridgewest is based in San Diego, CA and has investments across the USA, Europe, Asia and Australasia.
For more information visit www.bridgewestgroup.com
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For Advent International
Maggie Geng (Beijing) / Anna Bartram (Hong Kong)
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Anna Epstein or Sophia Templin
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Advent International agrees to sell its stake in Easynvest and become an investor in Nubank
SÃO PAULO, September 11, 2020 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has agreed to sell its stake in Easynvest (the “Company”), the largest independent digital investment platform in Brazil with more than 1.5 million customers, to Nubank, the largest independent digital bank in the world.
“We have been pleased with Easynvest’s achievements since agreeing to invest in the business in March 2017,” said Mario Malta, a Managing Director at Advent International in São Paulo. “The Company has more than quadrupled its number of clients during this period. It has been a gratifying experience to work alongside Easnyvest’s management team and partners to build a unique retail investment platform that is helping to educate Brazilians on how to invest.”
“We challenged the status quo in creating a new generation of simple, human-centric financial services products in Latin America,” said Nubank’s founder and CEO David Vélez. “The current investment market in Brazil is filled with products that are complex, expensive and surrounded by conflicts of interest. Joining forces with Easynvest will enable us to replicate Nubank’s approach of bringing simplicity and efficiency to a complex market and using technology and customer focus to truly democratize access to great financial services products for everyone. In Easynvest, we have found a partner that not only shares our cultural values and purpose, but also has a strong leadership position.”
In conjunction with the sale, Advent and other shareholders of Easynvest have also agreed to become investors in Nubank.
“We are pleased to become an investor in Nubank as we are impressed by the management team and the company’s exponential growth since its inception seven years ago,” said Brenno Raiko, a Managing Director at Advent International in São Paulo. “Together, Nubank and Easynvest have an incredible opportunity to continue to reshape a traditional market in Latin America with their pure digital business model.”
The sale of Easynvest and Advent’s investment in Nubank are subject to approval by the Brazilian Central Bank and the country’s antitrust agency, CADE. Terms of the transactions were not disclosed.
Advent is one of the leading and longest-established private equity investors in Latin America. Over the past 24 years, the firm has invested or committed $6.8 billion in 64 businesses across the region. Advent opened its São Paulo office in 1997 and to date has deployed $3.7 billion in 27 companies throughout Brazil in sectors such as business and financial services; healthcare; industrial; retail, consumer and leisure; and technology. Recent investments include CI&T, a global provider of digital transformation services; Grupo BIG (formerly Walmart Brazil), the third-largest food retailer in Brazil; YDUQS (B3: YDUQ3), the second-largest post-secondary education company in Brazil; Fortbras, one of the leading distributors and retailers of aftermarket auto parts in Brazil; and Grupo Fleury (B3: FLRY3), Brazil’s largest provider of premium medical diagnostic services.
Easynvest is the largest independent digital investment platform in Brazil, with more than
Nubank is the largest independent digital bank in the world, with around 30 million customers. The company launched its first product in 2014, a credit card with no annual fee managed entirely by a mobile app. Today, the card is used by 15 million cardholders. In 2017, Nubank also launched its benefits program, Nubank Rewards, and its digital account, currently used by 26 million Brazilians. A year ago, the company started testing its personal loan service and took the first steps in its international expansion. Nubank has offices in São Paulo (Brazil), Mexico City (Mexico), Buenos Aires (Argentina) and Berlin (Germany). Since its founding, the company has raised over US$1 billion through a number of investment rounds led by some of the best-known growth and technology investors in the world, such as TCV, Sequoia Capital, Kaszek Ventures, Tiger Global Management, QED, Founders Fund, DST Global, Redpoint Ventures, Ribbit Capital, Dragoneer Investment Group, Thrive Capital and Tencent. Fast Company magazine named Nubank the most innovative company in Latin America in 2019 and the 36th in the world in the ranking of the 50 Most Innovative Companies. For more information visit www.nubank.com.br
ABOUT ADVENT INTERNATIONAL
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 360 private equity transactions in 41 countries, and as of March 31, 2020, had $49 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. After more than 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.