November 8, 2023

Most Active Private Credit Investors in LATAM

Mike Shum
Most Active Private Credit Investors in LATAM

Venture debt and private credit financing in Latin America reached an all-time high in 2022, totaling $1.3 billion, according to an analysis by the Association for Private Equity Investment in Latin America (LAVCA). This growth is part of the broader expansion of the private credit market in the region.

The global financial crisis led to the rise of private debt in Latin America as traditional banks tightened their lending standards, creating opportunities for alternative lending sources.

Although debt financing in more advanced countries, like the United States, is fairly common, it’s still new to regions like Latin America. Private debt funds are on the rise, targeting the void left by more traditional international banks cutting back on lending. Debt has been particularly popular with Mexican startups holding unicorn status, such as Clara, Clip, Kavak, and Konfio.

“One of the reasons why they are looking for debt, rather than equity, is because it is currently very difficult to price a deal.” - Luis Felipe Trevino, Managing Director, Beamonte Investments

We’ve compiled a list of the most active debt investors currently operating across the continent. Knowing who these key players are and gaining access to their resources can be absolutely vital for any company that needs to meet its financial goals. With our research, you’ll have everything you need to connect with these lenders and walk away with reliable funding to benefit your business’s long-term growth. Read on to find out which investors should be on your radar.

Funds doing asset-backed debt deals in LATAM

The growth of private credit and infrastructure investments across Latin American markets is evident, with no signs of slowing down. This not only implies increased opportunities for cash-strapped businesses but also the provision of a much-needed lifeline from alternative debt lenders in challenging situations. Entrepreneurs should take note of the highlighted key players on our list, as they can offer vital capital to fuel growth and unlock further potential in the future. We are thrilled to be a part of the growth story for this market.

Know another fund who finances deals in LATAM that we missed? Let us know and we’ll get them included in our next feature.

You can download the full market map of the most active emerging market debt investors below.

Want to learn more about how Cascade Debt helps connect businesses to debt financing sources, structure, and manage loans? Schedule a demo with our team.