Dear Colleague,

 

What is Denham Capital's private equity strategy in power and renewables, oil and gas, and metals and minerals in Latin America? Where is the Oregon State Treasury developing a local presence in the region?

 

In this week's newsletter, we speak with the Managing Director of Denham Capital, Victor Mu�oz and the Senior Real Estate Investment Officer at the Oregon State Treasury, Anthony Breault.

 

Subscribe for free to the LPEJ newsletter for exclusive interviews with private equity thought leaders. Next week we speak with Mauricio Marcellini, Chief Investment Officer at FUNCEF, the third largest Brazilian pension fund with $25 billion in AUM.

 

Regards,

 

 

Seth Fraser

Editor, Latin Markets

Seth.Fraser@latinmarkets.org

212.213.3272

 

LPEJ: Tell us about Denham Capital's energy focused investment strategy. What are your funds under management?

 

VM: Denham Capital is a global private equity firm founded in 2004. Our total capital investment is committed through six funds is $7.3 billion. The firm has offices in Boston, Houston, London, Perth, and S�o Paulo, numbering about 70 employees of which 35 are investment professionals. Denham invests in three energy sectors: power and renewables, oil and gas (mainly in exploration and production), and metals and minerals. One of the characteristics that differentiate Denham from other PE firms is that most of our senior investment professionals have ample operational experience.

 

LPEJ: Why are power and renewables a focus of your portfolio and what has been your experience with the regulatory environment in Latin America?

 

VM: Power and renewables is a very interesting industry and offers many opportunities in Latin America and around the world. It is a very local business in part because regulations are very different from country to country. It is also very difficult to store and export electricity. Right now we have investments in thermal generation in the Philippines and Africa, wind generation in Australia, South Africa, and Brazil, biomass generation in the US and Germany, geothermal generation in the US, and a global team developing solar projects in several countries. In Latin America, Brazil, Chile, and Peru are of particular interest for us. Brazil is the largest market and offers the opportunity to participate in... (READ THE FULL INTERVIEW HERE)

 


 


 

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LPEJ: What is your diversification strategy and how do you evaluate investment opportunities across geographies? 

 

AB: Diversification bandwidths are only provided in our core investments, which comprise 30% of the real estate portfolio. Value added and opportunistic real estate strategies are unconstrained, other than a 50 percent maximum exposure outside the U.S., and so we do not have a set diversification mandate, geography or asset class directive. The concept is to go where capital is most needed, on a global basis, and to achieve the best risk-adjusted return.

 

LPEJ: How much of these international allocations are in emerging markets?

 

AB: Approximately 25 percent of our real estate holdings are international (ex-US). Most of this is within the emerging markets. Presently, approximately five percent is allocated to Latin America. We take an opportunistic value approach and have dedicated funds in India, Asia and Latin America in Brazil and Mexico. In Latin America we took the approach of going into Mexico first and then Brazil. Oregon has only invested in Brazil and Mexico to-date via closed end, commingled fund strategies. We are currently exploring pan-Latin America fund structures but have thus far preferred... (READ THE FULL INTERVIEW HERE)

 

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December 9-10, 2013 | Hotel Unique | Sao Paulo, Brazil
About Latin Private Equity Journal and Latin Markets

 

Latin Private Equity Journal (LPEJ) is a Latin Markets weekly newsletter and quarterly publication featuring interviews with LPs, GPs, government officials and private equity thought leaders active in Latin America.

 

Latin Markets produces event platforms that include a wide range of business development and educational vehicles enabling Latin America's most active investors and fund managers to more adeptly navigate socio-economical, regulatory and financial considerations within the market. 

 

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