Latin America remains in the sights of investors despite volatility

Latin America continues to generate a good level of interest among investors, especially in areas such as infrastructure, energy and food, despite the volatility and uncertainty that the region is experiencing due to external factors and political changes in its main economies.

“The stage ahead is not easy“, but at the same time, “Latin America continues to represent an important portion of the emerging world, we continue to see a good level of interestamong investors, said the managing partner of the private investment bank inverlink, Mauricio Saldarriaga.

At this time we are facing “a situation of inflation, and high interest rates to control it”, so “economic growth is not going to be anything exceptional”, to which are added “major political changes in many of the largest economies” from Latin America, where “more than ever there are governments of the left and that already sets a pattern”.

But “although the situation in Latin America it is challenging, it is also in other places and even more complicated, as it is right now in Europe”, added the managing partner of Inverlink, a private investment bank that provides advice to clients in processes of buying and selling companies, financial structuring and obtaining resources.

Beyond the political environment, the important thing, highlighted Saldarriaga, “is to have regimes that invite investment and entrepreneurship, because it is through them that you can face” the pressing challenges facing the region, such as “promote social mobility, grow the middle classes and improve the quality of” of the educational and health systems, among others.

Regional integration through companies

inverlink, based in Colombia and with 35 years of experience, has consulted in a dozen Latin American countries. He has completed more than 200 company purchase and sale transactions, representing an added value of US$35 billion, according to the firm’s data.

regional integrationIt has been happening, with Mexican, Brazilian, Peruvian, Chilean, and Colombian companies expanding” through mergers and acquisitions, Saldarriaga said.

In Central America, the executive explained, “There is also significant integration, we even see Central American and Caribbean players reaching economies like Colombia.”

“We as an investment bank in Latin America are betting on that. We have recently successfully completed 10 transactions, many between regional investors”.

The sectors that attract the most

Just as there are mergers and acquisitions between regional investors, large capital is coming from North America and Europe in different industries: infrastructure, energy, telecommunications, technology, he explained.

“Right now we see a lot of interest in long-term, defensive industries, where spending is less discretionary, more stableSaldarriaga said.

These are the sectorsinfrastructure (ports, airports, highways); energy (generation, transmission, distribution, where significant growth is seen); food and consumer products; logistics, and in technology we are beginning to see important movements”, explained the manager.

“At Inverlink we see a vibrant, dynamic region. We see the expansion process as natural, we want to be partners of these companies in these strategies and be able to accompany them to close transactions that are successful for them and that bring benefits to the countriesSaldarriaga added.

Source: EFE