Why Investment Bankers Are Looking to Latin America

Deal Talk with 7MA

Jul 31 2023 • 17 mins

Local and global investors alike are eager to tap into demand for nearshoring from U.S. and Canadian businesses, which remains high. Investors are also starting to back companies that serve local markets.

In this episode of Deal Talk with 7MA, host Ben Bruggeworth talks with 7MA colleagues Horacio Yenaropulos and Daniel Siller, both managing directors at 7MA.

Investors are “looking for nearshoring advantages and for good businesses with good capabilities inside the region,” says Horacio. Horacio and Daniel explain why investors are so excited about Latin America, the factors affecting supply and demand, and how they expect the growth of private equity in the region to play out.

Investor interest has increased following the pandemic, and both Horacio and Daniel expect it to grow further as the region develops the language and technology skills that U.S. and Canadian companies desire.

They warn, though, that founders and owners should expect lower valuations and increased scrutiny during due diligence as investors look more closely at business fundamentals than they did over the past couple of years. Daniel also notes that governments in the region need to clarify legal and legislative issues that impede investor confidence.

Regardless, Horacio and Daniel are both confident that the future for the region is bright. “It’s a nascent region with nascent private equity,” Daniel says, “I think that over time, a lot of the larger and midsize players will start to look at the region as a great place to invest.”

💡 Featured on the Episode 💡

Name: Daniel Siller

What he does: Daniel is a Managing Director with 7 Mile Advisors based in Boston, Massachusetts. Across more than 25 years of experience in investment banking, he has closed over $35 billion in equity raises and $50 billion in M&A transactions. Daniel, who is fluent in English, Spanish, and French, previously worked at several banks including Credit Suisse, Lazard, Morgan Stanley, and Goldman Sachs.

Organization: 7 Mile Advisors

Words of wisdom: “There are many years, if not decades, of potential growth in Latin America.”

Connect: LinkedIn

Name: Horacio Yenaropulos

What he does: Based in Mendoza, Argentina, Horacio is a Managing Director with 7 Mile Advisors and leads the Latin America sector coverage team. He has 25 years of financial experience and previously worked with Globant’s corporate development group, where his responsibilities ranged from due diligence to SPA closing. He’s also held financial leadership positions with several key Latin American companies, including PricewaterhouseCoopers, Hidronor Chile, Viña San Pedro Wine Group, and Belatrix Software.

Organization: 7 Mile Advisors

Words of wisdom: “A lot of good things are going to continue happening in this market.”

Connect: LinkedIn

Name: Ben Bruggeworth

What he