June 5, 2017 / 3:17 PM / 4 months ago

Brazil political risk leads to cautious buyout activity

SAO PAULO, June 5 (Reuters) - Escalating political turmoil in Brazil will probably spark more caution among private equity firm, with fundraising potentially bearing the brunt of a more skittish behavior among investors, an industry group said on Monday.

Investment commitments by private equity firms totaled 142.8 billion reais ($43.4 billion) last year, according to group ABVCAP. Fernando Borges, ABVCAP’s president, said players will adjust to new political conditions should turmoil escalate, “and asset prices will reflect that.”

Borges spoke at the sidelines of ABVCAP’s annual summit in São Paulo.

$1 = 3.2878 reais Reporting by Guillermo Parra-Bernal

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