Blackstone eyes Brazil with Patria link

Brazilian bank Patria Banco de Negocios is raising a private equity fund with a target of $400 million, according to sources.

The fund will target deals in Brazil, Latin America’s largest private equity market, and one that is drawing increasing levels of LP commitments. This month, Sao Paul-based alternative investment firm GP Investimentos announced a first close of $1.025 billion on a new private equity fund. 

Patria’s private equity fund is being placed by Park Hill Group, a placement agent affiliated with The Blackstone Group. Patria and Blackstone already have an agreement to share resources in their mergers and acquisitions advisory businesses. Prospective limited partners are being told that Patria may tap Blackstone as a co-investor on larger deals. Blackstone has not previously targeted Brazil for private equity investments.

Formerly called Patrimônio, Patria raised a $350 million fund in 1998 with CIBC Oppenheimer. The fund had two parallel vehicles for Brazilian investors and foreign investors, respectively. Limited partners included JP Morgan Partners, General Electric Investment Management, GE Capital, Aetna Insurance, Pacific Life Insurance, Ford Foundation, CDP Capital International and PPM América, Patrimônio Brasil Private Equity FITVM, Valia and Companhia do Vale do Rio Doce, according to Patria.

Patria’s private equity practice is overseen by Alexandre Saigh, who joined the bank in 1994 having previously worked at Drogasil and in the investment banking division of JP Morgan.