Private Equity & Venture Capital in Latin America BVCA International Series London – November 6, 2013 Juan Savino Director of Research

Research and Products 2013 LAVCA Industry Data and Midyear Reports Cited in multiple publications including, WSJ.com, NYTimes.com, Bloomberg BusinessWeek, Reuters, Private Equity International, and peHUB Wire. LAVCABase The Latin American Investor Network, is the only comprehensive online database of Latin America private equity and venture capital fund managers. Coller Capital / LAVCA LP Survey The first comprehensive survey of Latin American PE of its kind, providing a unique perspective of the issues and opportunities facing private equity investors in the region. The Latin America PE VC Report The Latin America PE VC Report is the official newsletter of LAVCA. 2013 LAVCA Scorecard Produced in collaboration with the EIU the LAVCA Scorecard ranks 12 countries based on 13 indicators. © 2013 LAVCA Industry Data

LatAm PE/VC Fundraising Following two years of record fundraising by Latin American private equity investors, with seven fund closings between $1b-$2b in 2010 and 2011, smaller funds dominated the market in 2012 and 1H 2013. Fundraising Amounts for Latin America (1993-1H2013) © 2013 LAVCA Industry Data

LatAm PE/VC Investments LatAm PE/VC Investments reach five-year high in 2012. The positive trend continues during 2013. Investment Totals for Latin America PE/VC (in USD million, 1998-1H2013) Notes a. 1998 - 2007 figures are based on VE-LA reports. 2008 -2013 are based on LAVCA industry surveys. © 2013 LAVCA Industry Data

5 years of PE/VC Activity in LatAm PE/VC Investments in LatAm by Type (in USD million and # of Deals, 2008-2012) © 2013 LAVCA Industry Data

LatAm PE/VC Investments: Key Trends Big Buyout funds raised in 2010 and 2011 put money to work during 2012. Buyout Funds Deals targeting retail and consumption dominated. Consumer Demand Latin American middle market deals attracted interest from both local and international GPs. Middle Market A new generation of VC investments contributed to record deal numbers. Venture Capital © 2013 LAVCA Industry Data

LatAm PE/VC Investments: Key Trends Big Buyout funds raised in 2010 and 2011 put money to work during 2012. Buyout Funds Deals targeting retail and consumption dominated. Consumer Demand Latin American middle market deals attracted interest from both local and international GPs. Middle Market A new generation of VC investments contributed to record deal numbers. Venture Capital © 2013 LAVCA Industry Data

LatAm PE/VC Investments Big buyout funds raised in 2010/11 put money to work 2010 2011 Amount Raised $3.3Bn Amount Raised $8.3Bn 2012 27 Deals closed (11.4% of Total) $3.6Bn Invested (45.3% of Total) $100m+ deals grew 21% yoy © 2013 LAVCA Industry Data

LatAm PE/VC Investments: Key Trends Big Buyout funds raised in 2010 and 2011 put money to work during 2012. Buyout Funds Deals targeting retail and consumption dominated. Consumer Demand Latin American middle market deals attracted interest from both local and international GPs. Middle Market A new generation of VC investments contributed to record deal numbers. Venture Capital © 2013 LAVCA Industry Data

The Consumer Trend Investments by Sector (in % of USD, 2012) Consumer/Retail was the most popular sector by dollars invested (27% of total). This trend is in line with LP expectations, reflected in the CollerCapital/LAVCA LP Survey. © 2013 LAVCA Industry Data

LatAm PE/VC Investments: Key Trends Big Buyout funds raised in 2010 and 2011 put money to work during 2012. Buyout Funds Deals targeting retail and consumption dominated. Consumer Demand Latin American middle market deals attracted interest from both local and international GPs. Middle Market A new generation of VC investments contributed to record deal numbers. Venture Capital © 2013 LAVCA Industry Data

Mid-market Investments Middle Market Trend Mid-market Investments (in USD Billion, 2010-2012) Latin American Middle Market is still attracting interest from both local and international GPs. Middle Market deals accounted for 34.5% of the total amount invested and 33% of the total number of deals. © 2013 LAVCA Industry Data

LatAm PE/VC Investments: Key Trends Big Buyout funds raised in 2010 and 2011 put money to work during 2012. Buyout Funds Deals targeting retail and consumption dominated. Consumer Demand Latin American middle market deals attracted interest from both local and international GPs. Middle Market A new generation of VC investments contributed to record deal numbers. Venture Capital © 2013 LAVCA Industry Data

Incubators & Business Accelerators The Ecosystem explodes in LatAm Public Support Incubators & Business Accelerators Angel Investor Networks

After a record year in 2011, exits Exits in 2012 After a record year in 2011, exits returned to 2010 levels Breakdown by country: Brazil accounted for 72.5% of the amount invested and 62.2% of the deals in the PE/VC LatAm Industry in 2012. In Mexico, total number of deals was on par with 2011, but it increased 50% in USD invested during 2012. The Andean Region, Chile and Peru were the main drivers of growth. © 2013 LAVCA Industry Data

Where LPs see exit opportunities? Breakdown by country: Brazil accounted for 72.5% of the amount invested and 62.2% of the deals in the PE/VC LatAm Industry in 2012. In Mexico, total number of deals was on par with 2011, but it increased 50% in USD invested during 2012. The Andean Region, Chile and Peru were the main drivers of growth. © 2013 LAVCA Industry Data

LAVCA Scorecard Countries are ranked based on the following indicators Laws on VC/PE fund formation and operation Tax treatment of VC/PE funds and investments Protection of minority shareholder rights Restrictions on local institutional investors Protection of intellectual property rights Bankruptcy regulation Capital market development and feasibility of local exits Registration/reserve requirements on inward investments Corporate governance requirements Strength of the judicial system Perceived corruption Use of international accounting standards Entrepreneurship US Penetration ranges from 0.1% to ~0.5%. © 2013 LAVCA Industry Data

LAVCA Scorecard – 2013 Ranking Overall score – 0-100 where 100=best environment © 2013 LAVCA Industry Data

a Director of Research jsavino@lavca.org Thank You! Juan Savino a Director of Research jsavino@lavca.org New York Headquarters 589 Eighth Avenue, 18th floor New York, NY 10018 Tel: 1.646.315.6735 Fax: 1.646.349.1047 Regional Office Av. Figueroa Alcorta 3351, office 001 Buenos Aires, Argentina, 1425 Tel: +54.11.4806.1154