Brazil's Abvcap private equity and venture capital association expects lower risk of exchange rate volatility to boost investments by funds in 2019, Reuters reported citing Abvcap board member Fernando Borges.
Borges attributed the 11.2% drop in investments by private equity and venture capital funds in 2018 to political uncertainty, but said the figure for 2019 would probably be "much higher," although he but did not give an estimate.
"Last year, uncertainties brought by Brazil's presidential elections hindered investments," Borges noted. Private equity and venture capital funds made investments of an estimated 13.5 billion Brazilian reais in 2018, according to the report.
Brazil-dedicated funds reached 39.3 billion reais at the end of 2018, levels not seen since 2015, a record year for the private equity and venture capital markets, the report said.
As of May 23, US$1 was equivalent to 4.04 Brazilian reais.