Private Equity and Financial Development in Latin America (Latin American Political Economy)

Shallow capital markets are a key bottleneck for private sector development in Latin America. Still, there is not a large literature on capital markets and corporate governance, or on the politics of regulatory reform and business associations, focused on this region. To help address this gap, this new book introduces private equity into the financial development debate through a Latin American lens. The author looks at the cases of Brazil, Mexico, Chile, Colombia, and Argentina. And proposes a shift in the financial development discussion from institutional explanations focused only on rules to an actor-based argument centered on the role of institutional investors, in particular pension funds . Acknowledgments Contents Abbreviations List of Figures List of Tables 1 Introduction 1.1 What is Private Equity? 1.1.1 The PE Model: Finance, Governance, and Operations 1.1.2 How are they Different? Groups, Multinationals, and State-Owned Enterprises 1.2 Why Latin America? 1.2.1 PE Investment Volumes 1.3 Data and Research Methods 1.4 Plan of the Book References 2 Private Equity, Financial Development, and Corporate Governance Reform 2.1 Financial Development and Private Equity 2.2 Beyond Investor Protections 2.3 Corporate Governance Reform 2.3.1 Labor 2.3.2 Managers 2.3.3 Institutional Investors 2.4 Quiet Politics 2.5 Update: State and Finance 2.6 Conclusion and Roadmap References 3 Private Equity and Latin America 3.1 PE and Stock Markets: Evidence from IPOs in Latin America 3.2 PE Investment by Country 3.2.1 Evidence from Business Elites 3.3 Alternative Explanations 3.4 Conclusion Appendix References 4 Institutions: Rules and Investors 4.1 Multilateral DFIs 4.2 Country Case-Studies 4.2.1 Brazil 4.2.2 Mexico 4.2.3 Chile 4.2.4 Colombia 4.2.5 Argentina 4.3 Discussion Appendix: Discussion on Trade-Offs and Challenges References 5 Industry Associations and the Politics of Regulatory Reform 5.1 Quiet Politics Agenda 5.2 Private Equity Industry Associations 5.3 Multilateral DFIs 5.4 Country Case-Studies 5.4.1 Brazil 5.4.2 Mexico 5.4.3 Chile 5.4.4 Colombia 5.4.5 Argentina 5.5 Discussion References 6 Beyond Latin America 6.1 The State as an Investor 6.1.1 United States 6.1.2 Europe 6.1.3 Asia 6.2 Business Associations and Regulatory Co-production 6.3 Discussion References 7 Conclusions 7.1 Private Equity and Development 7.2 Institutions: Rules and Investors 7.3 Financial Productive Policymaking: The State and Pension Funds References References Index