Private Equity and Venture Capital investments exceed R$28 billion in the first half

This is a machine translation of KPMG's press release

Investments from Private Equity and Venture Capital funds in Brazilian companies exceeded R＄ 28.1 billion in the first half of this year, a value 13.8% higher than the R＄ 24.7 billion invested in the same period of 2021. The growth was especially driven by the resources applied between the months of April, May and June of this year. The data are from a quarterly survey conducted by KPMG and the Brazilian Association of Private Equity and Venture Capital (ABVCAP).

Between April and June, investments in Private Equity reached R＄ 11.3 billion, an increase of 117.3% in relation to the first quarter, with emphasis on investments in the financial sector. In Venture Capital, the volume was R＄ 5.2 billion, a decrease of 18.8% compared to the first three months of this year.

“Even with all the adversities, Brazil continues to be an extremely relevant destination for these investments, as evidenced by the results for the semester. In addition, it is worth noting that the increase in invested resources is directly related to the strengthening of the business environment and, consequently, to the generation of more opportunities in the domestic market", says the lead partner of Private Equity and Venture Capital at KPMG in Brazil. ", Roberto Haddad.

Technology companies linked to the financial and insurance sectors ( fintechs and insurtechs ) received 21% of investments from venture capital funds in the first quarter of the year. Retailtechs , startups in the retail sector, accounted for 12% of the resources, while healthtechs , companies in the   health, they received 11% of the contributions.

“Although the more challenging business environment for Tech companies, the uncertainties related to the war and the electoral period may influence negotiations, Brazil continues to show great potential for expansion”, says the president of ABVCAP, Piero Minardi. "The balance between the consolidated values in Private Equity and in Venture Capital demonstrate that, in both cases, investors are focused on long-term growth and, therefore, keeping their breath to preserve resources and evaluating the risks", highlights .

Semi-annual investments

In billions of R ＄ 1st Sem 2022 1st Sem 2021 1st Sem 2020 FOOT 16.5 2.3 4.5 U 11.6 22.4 5.7 Total 28.1 24.7 10.2

quarterly investments

In billions of R ＄ Q1 2020 2nd Q 2020 Q1 2021 2nd Q 2021 Q1 2022 Q2 2022 FOOT 3.3 1.2 1.9 0.4 5.2 11.3 U 2.4 3.3 8.8 13.6 6.4 5.2 Total 5.7 4.5 10.7 14.0 11.6 16.5

2nd quarter 22 -- PE&VC sectors with the highest number of investee companies

sectors % companies Financial services 18% YOU 14% Retail 11%

2nd quarter 22 -- VC sectors with the highest number of invested companies

sectors % companies FinTech & InsurTech 21% RetailTech 12% HealthTech 11%