Brazil's private equity pullback

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Brazil's private equity pullback

B3, São Paulo’s stock exchange, has not seen an IPO for over three years. Photo: Alf Ribeiro/Shutterstock

Private equity funds invested BRL 13.3 billion (USD 2.2 billion) in Brazil in 2024, marking a 44% decline from the previous year and the lowest level in five years. The country recorded 70 private equity transactions last year, down from 84 in 2023.

Meanwhile, venture capital investment rose to BRL 9 billion, a 17% increase from the previous year — though the number of transactions nearly halved to 123 and the amount invested was still dwarfed by the BRL 51.3 billion peak of 2021.

The figures come from an annual report by the Brazilian Association of Private Equity and Venture Capital (ABVCAP). “The industry cooled off over the past two years,” said Priscila Rodrigues, president of the association. She told The Brazilian Report that Brazil’s private equity sector is still grappling with post-pandemic market dynamics, mirroring global trends.