Advent Plans $486M Investment In Walmart Brazil


As part of an agreement with Walmart, Advent International is planning on investing 1.9 billion reais — or $485.66 million — in the retailer’s operations in Brazil. The global equity fund plans to release the money over three installments, Reuters reported.

For capital raises, the first two installments will bring in 750 million reais individually. While the first raise has already happened, the second could come in 2019, and the rest of the funds could be invested by 2021. In June, Advent International’s Patrice Etlin said that the company would put billions of reais towards changing stores that weren’t profitable into wholesale stores that operate on a cash-and-carry model. However, Advent is reportedly not planning on adding new stores.

The news comes after Walmart announced in June that Advent International agreed to invest in a majority stake in Walmart Brazil to help “strengthen the business and position it for long-term success.” With the agreement, Advent was to hold 80 percent of Walmart Brazil, while Walmart Inc. would keep the remaining 20 percent. At the time, however, Walmart said that the transaction still needed regulatory approval in Brazil.

“We have been in Brazil for over 20 years and are excited about this partnership with one of the country’s leading retailers,” Etlin said in the June announcement. “We believe that with our local market knowledge and retail expertise, we can position the company to generate significant results and reach new levels of success in Brazil.”

Advent, a global private equity fund, opened the doors to a São Paulo office in 1997 and has invested in 30 companies in the country in different sectors. Overall, the company has completed 75 investments in 22 countries.

In the June press release, Enrique Ostalé, executive vice president and regional CEO of Walmart U.K., Latin America and Africa, said, “We will retain a stake in Walmart Brazil and continue to share our global retail expertise, giving our Brazil business the best opportunity for long-term growth, providing opportunities for associates and low prices for customers.”