Brazilian investment firm raises $305m

Publicly listed Tarpon has raised fresh capital for several vehicles and completed a third closing of its ‘All Equities Fund’ on $760 million.

Publicly listed Brazilian asset manager Tarpon Investment Group has raised $305 million (€200 million) in commitments to its funds, of which $285 million was committed to the Tarpon All Equities Fund which completed a third close on $760 million. The All Equities Fund has deployed $475 million since its inception in September 2006.

Commitments were obtained from limited partners including endowments, foundations and sovereign wealth funds, according to a statement from investor relations officer Eduardo Mufarej.

All Equities Fund invests in “deeply undervalued opportunities either in private or public equities” throughout South America, according to the firm’s website. The fund returned 51.53 percent in 2007, the firm said.

Tarpon has made three private equity investments to date. It led a $200 million investment in sugar cane-based ethanol company Brenco in 2007, and acted as a founding shareholder in Brazilian agricultural property company BrasilAgro in 2005, which went public in April 2006. Tarpon also acquired a 25 percent stake in fashion retailer Arezzo Industria e Comercio for $76.32 million in November 2007.

Tarpon listed on the Luxembourg Stock Exchange in 2007 and also trades on the Brazilian Stock Exchange. As of 17 January 2008, Tarpon had committed $155 million of the approximately $230 million in proceeds from its initial public offering to the All Equities Fund, all of which has been invested.

Tarpon was the second investment firm to list its shares in Brazil following the June 2006 IPO of GP Investments, which raised $329.7 million.

An additional $20 million in new commitments was raised for other Tarpon funds and managed accounts.

Tarpon was founded in June 2002 with $1 million in commitments. The firm now has more than $1.3 billion in assets under management with offices in Bermuda and in São Paulo.