US private equity firm Brysam Global Partners will keep looking for investments in Latin America's financial system despite the global downturn, Marge Magner, managing partner and cofounder, told BNamericas.
"There are some really good opportunities out there now as even very well-performing financial services companies have very low valuations".
"Any financial crisis creates opportunities and we'll see what happens going forward. We continue to look though, we're not retrenching," she said.
On October 22, Brysam announced it was acquiring an 18.8% stake in Colombian bank BCSC for 230bn pesos (US$98mn).
"The Colombian market has performed relatively better than many other markets recently. There is confidence and stability in the government and the financial system so we still like Colombia," Magner said, but added there is nothing else that Brysam is looking at specifically at this time.
Brysam Global Partners focuses on investing in consumer financial services in emerging markets with sizeable middle-class populations.
"The economy will slow a touch around the world, but generally the middle class will continue to grow and these economies will grow over time," Magner said.
Brysam's entry into BCSC's property will be done in equal proportions, purchasing shares from its controller, non-profit Fundación Social group, and subscribing new bank shares to bring in fresh capital, which will strengthen the bank's equity by 20% and help expand its business.
"BCSC really fits into our target market, they're interested in expanding and the help we can give them", Magner said, anticipating the deal should be closed in the latter part of the year or early 2009 after regulatory approvals are granted.
Brysam's investment has a 5-year time frame. The US firm has no plans at this time to increase its stake in BCSC, said Magner.
After regulatory approvals are granted, Fundación Social will remain the largest shareholder in BCSC with a 71.7% stake. IFC owns a 9.5% stake in BCSC. Brysam will also appoint one board member to BCSC.
BCSC is Colombia's 12th largest bank and focuses on microcredit and mortgage loans, where it commands 25% and 8% respective market shares.
The bank had 5.6tn pesos in loans as of end-August.
In Latin America's financial system, Brysam already has a 27.9% stake in Mexican financial services group IXE and it also owns 100% of a consumer finance company in that country.
Magner is former chairman and CEO of Citigroup's (NYSE: C) global consumer group.
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