Advent International Corp., Boston, is offering one-stop shopping to the world's private equity markets.
Douglas R. Brown, president and chief executive officer, says his firm can accommodate the needs of U.S. pension executives wanting to reduce the number of relationships they have with outside money managers while benefiting from the double-digit returns available from private equity investments.
Advent already is well established with regional funds in Western Europe and Asia, he said. Nearly half of its $1.5 billion under management is invested in Europe; 20% is invested in Asia; and the remainder in the United States. About 80% of its assets come from U.S. institutional investors.
The firm seeks large, later-stage financings, targeting certain industries, such as specialty chemicals, media and entertainment, and health-care services companies.
This year, the firm has pushed into Central Europe, raising $140 million in commitments from institutional investors. It also is seeking to raise $200 million for a Latin American fund.
The Central European fund will invest in Poland, the Czech Republic, Hungary, Slovakia and perhaps in peripheral markets, such as the Ukraine, Mr. Brown said. The fund will take advantage of huge restructurings within Central Europe, he said. Advent already is parlaying its expert knowledge in cable television into an investment in Poland.
In Latin America, Mr. Brown said high growth rates, rivaling those in Asia, stable political situations and moderate inflation rates offer investment potential.
The Latin American fund will rely more heavily on expansion financing than Advent's other funds, which generally have a mix of two-thirds management buy-outs and one-third expansion financings. Advent officials have raised 60% to 70% of their target, and plan a first closing at year end.