“Prices on private deals have increasedtoo much in the pressure of competition,” he said, yet private-equity firms have to invest in Brazil “no matter what” becauseclients are demanding it as opportunities elsewhere dry up.
“My clients have been complaining about these newvaluations,” Crider at Simpson Thacher said. “About seven newinternational funds have been investing in Brazil in the lasttwo or three years as the opportunities in Europe and UnitedStates dwindle.”
According to market insiders, private-equity firms have about $10 billionto invest in Brazil through dedicated funds in the next two tofour years, but “there aren’t enough good private projects for all thisprivate-equity money that needs to be invested in Brazil.”
A rising favorite: “this time is different”…
“The biggest celebrity in M&A; deals in coming years will be private-equity firms,” said an M&A; lawyer. “There is a lot of movement from private equities, which have a huge appetite.”