Capital Raising - South America

South America

The total capital raised in the Capital Raising market market in South America is expected to reach US$10.9bn in 2024.
Traditional Capital Raising holds the dominant position in the market, with a projected market volume of US$10.6bn in 2024.
When compared globally, the United States is set to generate the most capital raised, with US$331,800.0m in 2024.
In South America, the Capital Raising market is witnessing a surge in private equity investments, particularly in Brazil's tech and renewable energy sectors.

Key regions: United States, China, India, Israel, Europe

Market

Region

Region comparison

Currency

Analyst Opinion

The Capital Raising market in South America has been experiencing significant growth in recent years.

Customer preferences: Investors in South America have shown a strong preference for capital raising activities, particularly in the form of initial public offerings (IPOs) and debt issuances. This is driven by a desire to diversify investment portfolios and take advantage of the potential returns offered by emerging markets. Additionally, there is a growing interest in sustainable and socially responsible investments, which has led to an increase in capital raising activities in sectors such as renewable energy and infrastructure.

Trends in the market: One of the key trends in the South American capital raising market is the increasing participation of local investors. Historically, international investors dominated the market, but there has been a shift towards more domestic participation. This can be attributed to the growing wealth and sophistication of local investors, as well as efforts by regulators to promote domestic capital markets. Another trend in the market is the rise of alternative capital raising platforms. Crowdfunding and peer-to-peer lending platforms have gained popularity in South America, providing small and medium-sized enterprises with access to capital that may not have been available through traditional channels. This has democratized the capital raising process and allowed for greater participation from a wider range of investors.

Local special circumstances: One of the unique characteristics of the South American capital raising market is the presence of state-owned enterprises. These companies often play a significant role in capital raising activities, particularly in sectors such as energy, telecommunications, and transportation. The involvement of state-owned enterprises can create opportunities for investors, but also presents challenges in terms of transparency and governance.

Underlying macroeconomic factors: The development of the South American capital raising market is closely tied to the region's macroeconomic conditions. Economic growth, stability, and investor confidence are all important factors that influence the level of capital raising activity. South America has experienced periods of both economic growth and volatility in recent years, which has had an impact on the capital raising market. Additionally, regulatory frameworks and government policies play a crucial role in shaping the capital raising landscape. Efforts to improve transparency, strengthen investor protection, and promote market integrity are key drivers of market development. Government initiatives to attract foreign investment and promote capital market growth also contribute to the expansion of the capital raising market in South America. In conclusion, the Capital Raising market in South America is experiencing significant growth due to customer preferences for diversification, sustainable investments, and local participation. The market is characterized by the rise of alternative capital raising platforms and the presence of state-owned enterprises. The development of the market is influenced by underlying macroeconomic factors such as economic growth, stability, and regulatory frameworks.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.