Foreign funds stay optimistic on Brazil, favouring buyouts

Rio de Janeiro

GLOBAL private-equity funds are looking to Brazil at a time when many local firms are watching from the sidelines, betting that lucrative investment opportunities remain despite recent economic and political turmoil.

Executives at foreign buyout and consultancy firms at an industry summit in Rio de Janeiro this week are discussing potential deals, fundraising efforts and business opportunities in an economy that appears headed for its steepest recession in two decades.

While local peers are reluctant to pursue mergers and acquisitions before President Dilma Rousseff's administration wins congressional approval for spending cuts, Advent International Corp and foreign rivals are trying to get ahead. Last month, Advent purchased for-profit university Faculdade da Serra Gaúcha, marking its return to Brazil's edu…