Perspective on the Future of Private Markets

While comparisons between the AI boom and the early-2000s tech bubble persist, AI remains in its early stages and is largely enhancing — not replacing — enterprise software. Orlando Bravo emphasized the need to focus on business fundamentals rather than market noise and warned that fundraising is increasingly concentrated among managers with proven performance, as investors grow cautious about liquidity constraints.

Bridging the Investment Gap Between Asia, Latin America and the Caribbean

The discussion highlighted growing cross-regional collaboration between Asia and Latin America, driven by strategic interests in technology, energy and agriculture. KVIC is backing Korean-linked businesses globally and encouraging cross-border partnerships, such as collaborations between Latin American and Korean startups. JICA, whose private sector operations began in 2012, now manages USD5b in global assets and plans to allocate USD2b for fund and direct investments in 2026, with Latin America as a key focus.

Beyond Capital: Unlocking Long-term Value

The session outlined Advent’s five guiding principles for value creation: establish a clear value creation plan, ensure a strong and engaged board, build an exceptional management team, act decisively and take bold risks. The discussion highlighted Advent’s investment in Skala, led by Tarik Mohallem, which has grown twentyfold to become the fifth-largest hair care brand in the US, with operations built from the ground up. 

Financing the Future: Energy Transition & Climate Solutions

Latin America’s energy landscape has shifted from expanding generation capacity to prioritizing efficiency, reliability and grid modernization. Renewables now represent the region’s cheapest power source, and investors are focusing on grid integration, distributed generation and infrastructure for the energy transition. Speakers underscored that climate goals must align with strong financial performance, as even the most impact-driven investors remain accountable to returns. The discussion also highlighted growing opportunities to back companies supplying materials, technology and manufacturing essential to the renewables industry.

The Private Credit Boom: Catalysts & Opportunities

As fund managers diversify their strategies, private credit has emerged as one of the fastest-growing asset classes in Latin America. Private credit provides tailored solutions such as specific covenant structures and payment terms, offering greater flexibility than traditional banks. The integration of AI is expected to increase the efficiency of credit sourcing and structuring, further expanding the market through lower operating costs.   

Infrastructure: Powering Latin America’s Future

Latin America’s infrastructure landscape is being reshaped by shifting government priorities and challenging macroeconomic conditions. In Brazil, simultaneous fiscal stimulus and tight monetary policy have created a high cost of capital, driving attractive returns in infrastructure, particularly in toll roads. Colombia’s focus has shifted from highways to rail and renewables, though future investment will be needed in roads, airports and transmission. In Mexico, a renewed national infrastructure agenda is expected as the private sector re-engages following years of limited public investment.

Sustainability in Action: LAVCA Deal Awards

The 2025 LAVCA Deal Awards recognized DNA Capital of Social Impact, SP Ventures of Environmental Responsibilty, Crescera Capital of Innovation and Lightrock of Better Tech for their outstanding contributions. Across all asset classes, investors are integrating impact considerations into their investment processes, with a focus on gender equity, affordable access to healthcare and education, financial inclusion and climate adaptation and resilience.

Serving the New Consumer: Insights from Health, Education & Commerce

An expanding aging population in Latin America is driving demand for healthcare, with the sector’s growth rate doubling the region’s average GDP growth rate. Education is also projected to expand steadily, with private capital-backed edtech platforms poised to benefit from regulatory reforms that support distance learning. Both sectors demonstrate consistent growth and resistance to economic volatility, attracting capital across investment stages.

Latin American Private Capital Industry Trends

LPs are shifting investment strategies in the region, concentrating on experienced managers across asset classes.Institutional investors are increasing commitments to funds focused on real assets, with significant capital raised for forestry and infrastructure debt. Private credit is booming, filling financing gaps for mid-market companies and infrastructure projects. Liquidity is a key focus for investors, as fund managers realized USD6.2b in 1H 2025, with secondaries accounting for 28% of deal value. Download the Report

Investing with Purpose: Impact Deals Today

Impact investments target essential sectors such as healthcare, financial inclusion and education for underserved populations, aligning social benefits with scalable financial returns. Many investors are pursuing dual mandates, blending fund investments with direct or co-investments to deepen regional impact and foster early-stage innovation. Family offices and institutional investors increasingly back fund managers with strong local ties, committed to broader goals of building economic and climate resilience.

Perspectives from Latin America’s Leading Institutional Investors

Institutional investors in Latin America are shifting from large global funds to alpha generation through co-investments and middle-market opportunities. Private wealth clients are increasingly demanding alternative investments, prompting the launch of new products. Pension reforms in Chile and Colombia may affect local funds’ balance sheets and appetite for alternatives. In contrast, Mexico’s growing pension assets and lighter restrictions present opportunities to channel more capital into domestic projects and attract global GPs to invest locally.

Building a Generational Company

Operating in a complex regulatory environment, Brazilian SMEs require sophisticated ERP solutions. Omie has leveraged a unique go-to-market approach, shifting to direct sales through accountants and reducing adoption attrition using WhatsApp AI integration, positioning itself as a regional leader. The digitalization wave for SMEs across Latin America is still in its early stages, signaling significant growth potential.

The Global Commerce Playbook for Latin America

WhatsApp is driving the shift toward conversational commerce in Latin America, leveraging network effects and AI-integrated ERP solutions across businesses of all sizes. When discussing internationalization, speakers emphasized that startup founders should pursue international expansion for genuine strategic reasons, not merely as a narrative for fundraising.

Data as a Moat: Building with AI

Brazil ranks among the top three global markets for AI adoption, reflecting Latin America's growing digitally engaged population. Adoption in the region is fueled by necessity, with startups prioritizing customer needs and real-world applications over research-intensive models. Leading AI teams combine scalable infrastructure, strong UX design and domain expertise, leveraging rapid go-to-market strategies for competitive advantage. 

Different Mandates, One Market: Strategic Capital in Tech

Corporate venture capital (CVC) is becoming increasingly active, shifting from passive sponsorship to playing a long-term role in driving innovation and value creation. Corporate investors represent a wide range of structures, from multi-corporate funds to family office-backed venture arms. In Latin America, startups are becoming more capital-efficient, leveraging technology and corporate partnerships to scale effectively. 

Where is the Liquidity?

Market conditions in Latin America have shifted in recent years, creating more opportunities to deploy capital at lower valuations. Growth-stage investments remain uneven, with global investors often applying higher valuation benchmarks than local players, highlighting the need for realistic pricing to facilitate transactions. Secondary markets are providing liquidity for companies outside large tech players, particularly those with solid multi-year growth trajectories. As high-quality companies stay private longer, secondary mechanisms are becoming increasingly important.

Beyond LatAm: Winning Global Markets

More Latin American entrepreneurs are expanding into the US and Europe, accessing hard-currency revenue and higher valuation multiples. Beyond financial gains, international expansion offers knowledge-building and market intelligence opportunities. Younger founders are often international from the start, establishing a presence outside the region to attract strategic buyers and new partnerships.

Enduring Capital: Building Institutions Across Cycles

Long-term institutional investment requires careful monitoring of asset allocation, risk and liquidity during market downturns, while maintaining strong relationships with trusted managers. Emerging markets offer attractive opportunities, with Brazil standing out for its digitalization, internet penetration and cross-border potential with US companies. Small initial allocations to these markets can play an important role in portfolio construction and may grow over time.

From Product to Platform: The Evolution of Fintech Business Models in Latin America

Latin American fintech has progressed from replicating US models to developing app-based solutions and infrastructure platforms that support broader ecosystems. Brazil and Mexico lead fintech markets, driven by smartphone adoption and the need to modernize traditional banking. Payments continue to be a key growth area, highlighted by Brazil’s PIX system, while blockchain and stablecoins offer additional opportunities despite regulatory uncertainty.

Blockchain Infrastructure in Latin America

In Brazil, traditional finance is increasingly integrating blockchain infrastructure while adhering to regulatory standards developed with the private sector. The widespread adoption of PIX, digital identity functionality and the growth of open finance are driving this expansion. Blockchain-powered agentic payments align naturally with broader Latin American trends, including nearshoring and the rise of conversational commerce.

Investing Early: Finding the Next Generation of Iconic Founders

Despite AI expanding access to technical products, successful startups continue to build proprietary tech stacks and effectively write their own playbooks. Advanced tools are enabling smaller developer teams to operate more efficiently.  Investors continue to prioritize experienced entrepreneurs capable of creating new markets, executing diligently and leveraging proprietary data to iteratively improve their products and models.

Emerging Managers in Venture: Crafting a New Path

Specialized fund managers must align strategies with the specific needs and interests of their target LP base. Successful emerging managers position themselves as true partners to entrepreneurs, collaborating with experienced founders who demonstrate long-term vision. Investors are willing to pay a premium for such high-performing entrepreneurs, with the goal of achieving top-quartile returns while maintaining a minimized risk profile.

A Global Vision for Venture

University endowments must balance long-term investment horizons with the short-term financial needs of their institutions, establishing liquidity as a key priority. These institutions prioritize fund managers with demonstrated flexibility and adaptability, adjusting strategies in response to changing market conditions. Endowments continue to seek international exposure for portfolio diversification and opportunities to drive global innovation.