GP Investments
Encyclopedia
GP Investments is a private equity
firm focused on emerging markets
leveraged buyout
and growth capital
investments in Latin America
. The firm's shares are publicly traded on the Brazilian BM&F Bovespa.
The firm, which is one of the leading Latin American private equity firms has raised approximately $4 billion since inception across five funds and has completed 48 investments in 15 different industries as of 2009.
GP Investments, which is based in São Paulo, Brazil, was founded in 1993. The firm also has offices in Hamilton, Bermuda
and Mexico City
.
. Among the firm's most notable current investments are
, what was at that point a nascent market in private equity
. At that time, the firm was a subsidiary of Baring Private Equity International, an affiliate of Barings Bank
. Among the affiliates of Baring Private Equity Internationa are Russia-focused Baring Vostok Capital Partners
founded in 1994, as well as Baring Private Equity Asia founded in 1997and Baring Private Equity Partners India, founded in 1984..
In 1994, GP raised its first investment fund with US$500 million of investor capital which it followed up with its US$800 million successor fund, GP Capital Partners II, in 1997.
In 2001, the firm completed fundraising for its first local private equity fund raising R$130 million to focus on technology investments. In 2003, the current executive partners, Antonio Bonchristiano and Fersen Lambranho assumed the leadership of the firm and the following year acquired 100% control of the firm from ING Barings. Under the terms of the agreement with its former parent, the investment teams managing each regional fund acquired ownership of their respective management companies.
The firm underwent a novel structural change in 2006, selling shares to the public to raise permanent capital for future transactions. GP completed a $308 million initial public offering
in 2006, listing its shares on BOVESPA
to generate permanent capital for future investments. The firm has used the capital to make investments on behalf of the firm's balance sheet alongside its family of private equity investment funds
. The following year, in 2007, the firm raised its then largest fund to date with US$1.3 billion of capital as interest in emerging markets and the BRIC
countries increased dramatically. Also in 2007, the firm was able to raise US$190 million of debt through an offering of perpetual notes, followed in 2008 by a $232 million follow-on equity offering which increased its permanent capital base.
GP is in the process of raising the firm's latest investment fund, GP Capital Partners V. GPCP V held its first closing in July 2008 on US$884 million of investor commitments.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on emerging markets
Emerging markets
Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. Based on data from 2006, there are around 28 emerging markets in the world . The economies of China and India are considered to be the largest...
leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
. The firm's shares are publicly traded on the Brazilian BM&F Bovespa.
The firm, which is one of the leading Latin American private equity firms has raised approximately $4 billion since inception across five funds and has completed 48 investments in 15 different industries as of 2009.
GP Investments, which is based in São Paulo, Brazil, was founded in 1993. The firm also has offices in Hamilton, Bermuda
Hamilton, Bermuda
Hamilton is the capital of the British Overseas Territory of Bermuda. It is the territory's financial centre and a major port and tourist destination.-Geography:...
and Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
.
Investments
The firm invests across a range of industries in Latin AmericaLatin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
. Among the firm's most notable current investments are
- Allis
- Fogo de ChãoFogo de ChãoFogo de Chão is a Brazilian chain of fine dining churrascaria full-service restaurants with sixteen locations in the United States of America and six locations in Brazil. The company is equally owned by two brothers, Jair and Arri Coser. The first United States location was opened in Dallas, Texas...
- BHG - Brazilian Hospitality Group
- BRMalls
- BR Properties
- Tempo
- Magnesita
- San Antonio
- Allis
- Invest Tur
- Estácio
- Leitbom
- BRZ Investments
1993-2003
GP Investments was founded in 1993 to focus on investments in Latin AmericaLatin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
, what was at that point a nascent market in private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
. At that time, the firm was a subsidiary of Baring Private Equity International, an affiliate of Barings Bank
Barings Bank
Barings Bank was the oldest merchant bank in London until its collapse in 1995 after one of the bank's employees, Nick Leeson, lost £827 million due to speculative investing, primarily in futures contracts, at the bank's Singapore office.-History:-1762–1890:Barings Bank was founded in 1762 as the...
. Among the affiliates of Baring Private Equity Internationa are Russia-focused Baring Vostok Capital Partners
Baring Vostok Capital Partners
Baring Vostok Capital Partners is an independent private equity firm focused on investments in Russia and the Commonwealth of Independent States...
founded in 1994, as well as Baring Private Equity Asia founded in 1997and Baring Private Equity Partners India, founded in 1984..
In 1994, GP raised its first investment fund with US$500 million of investor capital which it followed up with its US$800 million successor fund, GP Capital Partners II, in 1997.
In 2001, the firm completed fundraising for its first local private equity fund raising R$130 million to focus on technology investments. In 2003, the current executive partners, Antonio Bonchristiano and Fersen Lambranho assumed the leadership of the firm and the following year acquired 100% control of the firm from ING Barings. Under the terms of the agreement with its former parent, the investment teams managing each regional fund acquired ownership of their respective management companies.
Since 2005
By the mid-2000s, GP was once again growing rapidly. In 2005, the firm, under its new leadership, was able to raise its third private equity fund, GP Capital Partners III, which closed on $250 million of investor capital in 2005.The firm underwent a novel structural change in 2006, selling shares to the public to raise permanent capital for future transactions. GP completed a $308 million initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in 2006, listing its shares on BOVESPA
Bovespa
The BM&FBOVESPA is a stock exchange located at São Paulo, Brazil. As of December 31, 2010 it had a market capitalization of US $1.54 Trillion, making it one of the largest in the world. On May 8, 2008, the São Paulo Stock Exchange and the Brazilian Mercantile and Futures Exchange merged,...
to generate permanent capital for future investments. The firm has used the capital to make investments on behalf of the firm's balance sheet alongside its family of private equity investment funds
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
. The following year, in 2007, the firm raised its then largest fund to date with US$1.3 billion of capital as interest in emerging markets and the BRIC
BRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
countries increased dramatically. Also in 2007, the firm was able to raise US$190 million of debt through an offering of perpetual notes, followed in 2008 by a $232 million follow-on equity offering which increased its permanent capital base.
GP is in the process of raising the firm's latest investment fund, GP Capital Partners V. GPCP V held its first closing in July 2008 on US$884 million of investor commitments.
External links
- GP Investments (company website)