Axxon Group Private Equity says it is Planning to Raise $290 million to Fund Acquisitions in Brazil
Online, September 20, 2010 (Newswire.com) - In a move targeted at investments in Brazil, Latin America's biggest and fastest growing economy, Axxon Group Pvt Equity is mulling a raising pegged at $290 million for Brazilian investment undertakings, Bloomberg reported Thursday. According to the Bloomberg reports, Axxon Group Pvt Equity is keen on investing in the healthcare, education, retail and cosmetics industries in the country.
From its plans, Axxon will raise the funds from institutional investors in the US and Europe. Axxon was set up in 2001 as a manager of Natexis Banques Populaires' private equity funds. Axxon Group Pvt Equity is a Brazilian buyout company and its intended funds raising will go into accelerating its acquisition of local firms related to consumer growth in the country.
According to one Nick Wollak, manager of Axxon's funds, the fresh raising will target assets in the healthcare, education, retail and cosmetics firms, for which the firm has a number on its sights. Axxon is in talks with some potential target firms already, said Wollak. Additional investments by Axxon are being undertaken from the backbone of the forecast Brazilian economic growth.
Brazil's economy will grow by 7.3% in 2010, forecasts have shown, from a study that was carried by the Brazilian Central bank and published Monday. Currently, Axxon Group manages 300 million reals in private equity, with investments in firms like Lupatech SA, an oil service provider. Its increased investments are geared at taking advantage of the growth in the industry in Brazil, as Petrobras, the Brazilian state owned oil explorer plans to spend a whopping $224 billion to develop offshore fields.
Axxon Group has offices in Sao Paulo and Rio de Janeiro and has invested $200 million in Brazil to buy stakes in nine companies, including Lupatech and Mills Estruturas e Servicos de Engenharia SA, a provider of scaffolding and concrete forms for Brazil's oil, shipbuilding and construction industries.
Axxon Group is a private equity firm specializing in acquisitions, add-on acquisitions, recapitalizations, and growth capital investments in small and mid-cap companies. The firm also considers investments in turnarounds. The firm typically invests in companies with revenues between $10 million and $150 million to acquire control or shared control stakes in its portfolio companies.
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