Brazilian Companies Go Global With Private Equity Support

5/16/2024 7:00:07 PM

(MENAFN- The Rio Times) In a world where global boundaries are increasingly fluid, Brazilian companies are ambitiously expanding internationally.

Driven by strategic shifts, industries such as cosmetics, technology, and manufacturing are pursuing global markets.

Companies like Skala, Prestige, Tigre, CI&T, and fintech leader Ebanx are expanding beyond Brazil. Backed by private equity investments, they aim to enhance their global presence.

Rogério Cafruni of Advent International emphasizes that global expansion is integral to their investment strategy, unlocking new avenues for value creation.

Warburg Pincus also recognizes this trend, with Frances Fukuda noting that the expansion is largely driven by the needs of multinational clients.

These companies are diversifying internationally, not just to escape saturated domestic markets but also to navigate stringent local regulatory environments.

Carlos Penteado Braga from the Dom Cabral Foundation points out that tech companies find this expansion smoother due to lower infrastructure needs.

In contrast, traditional industries incur higher overseas operational costs.
Brazilian Companies Expanding Globally
Strategic initiatives are evident as Skala extends its reach with its popular haircare products.

Meanwhile, Tigre is building a new U.S. factory after acquiring Dura Plastics, aiming to penetrate the fragmented American construction market.

Meanwhile, Ebanx is breaking into markets in India and Africa, facilitating e-commerce with local currency transactions.

CI&T, now publicly traded on the NYSE, reports that nearly 40% of its revenue is from international activities. This showcases the potential for Brazilian tech companies abroad.

Additionally, Prestige Cosmetics is actively pursuing the American beauty market with support from Grupo Leste's private equity arm.

This trend marks a critical transformation for Brazilian businesses as they evolve from regional leaders to global contenders.

Supported by comprehensive private equity networks, these companies are not only expanding their operations. They are also redefining Brazil's economic footprint globally.

This isn't just about market expansion; it's about elevating Brazil's stature on the world economic stage and transforming potential into tangible success.

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