With 600 million people, a rising youth population, expanding middle-class, strong GDP growth and low debt, Latin America is creating attractive acquisition and investment opportunities for private equity and other direct foreign investment. Taken as a whole, the region's economies total about half of the value of the U.S. economy. Latin America is ripe for private equity penetration and is a less competitive market for PEGs than markets in North America or Europe. U.S. private equity investment in middle-market companies in this part of the world is poised to surge over the coming years, so getting in at this early stage can be lucrative. In anticipation of greater demand for middle-market M&A services in Latin America – from sellers based in the region and from overseas buyers looking for Latin American acquisitions or joint ventures – Woodbridge has established offices in Brazil, Mexico and Honduras:
- Woodbridge’s Mexico office covers the population of 110 million people. Mexico posted GDP growth of 5% in 2010 and, as a NAFTA member, the country is one of the most active trading partners of the U.S.
- Woodbridge’s Brazil office covers the population of 194 million people in a country whose GDP rose 7.5% in 2010.
- Woodbridge’s Honduras office covers the countries of Central America (a combined population of 41.7 million) plus Colombia (population 46.3 million). Colombia’s GDP grew 4.4% in 2010. The U.S.-Colombia Trade Promotion Agreement, likely to be ratified by Congress this year, will significantly expand economic growth and expand trade between the two countries.
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