Narayan AmmachchiAmerican equity investor Riverwood Capital secured US$1.8 billion in funding, earmarking a significant portion of this capital for mid-sized tech companies in Latin America.
The California-based equity firm, boasting over US$5.8 billion in assets under management, holds the distinction of being an early investor in Argentinean software company Globant.
Riverwood typically backs around 25 companies per funding cycle. Over the years, the firm has invested in over 75 small and mid-sized IT companies across the Western Hemisphere.
Characterized by its growth investment approach, Riverwood tends to invest between US$25 million and US$100 million in each company.
Its track record in Latin America is impressive, with portfolio companies exhibiting average annual growth rates exceeding 50%. Notable regional investments include Quintoander, Vtex, Sensedia, Suma SaaS, Digital House Coding School and Gupay.
“The technology opportunity in Latin America has been consistently expanding during the past 15 years,” Francisco Alvarez-Demalde, Co-Founder and Managing Partner of Riverwood told Techcrunch. “Our portfolio companies have been able to expand their revenues at +50% per year on average during that period.”
To effectively manage its Latin American investments, Riverwood established a regional office in São Paulo, Brazil. This strategic presence underscores the firm’s commitment to the region’s dynamic technology landscape.
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