INVESTMENT OPPORTUNITIES

Global repositioning is creating excellent opportunities accross sectors in Latin America

Industry specific opportunities are presenting itself due to the repositioning of global players, due to a re-accommodation of regional groups and specific liquidity and market price induced opportunities:

- Global financial institutions will need to retract and redefine their global footprints, a process that has hardly started but will be offering exciting distressed asset values for solid regional banking operations.

- Global industrial groups facing liquidity restrictions in their core markets might need to fire-sale subsidiaries in their non-core Latin American markets.

- Private equity funds are in a comparable mode, restructuring debts at several of their portfolio companies and looking for exits on certain assets that can be disposed, mostly the better performing assets in strategic industries.

- Strong regional groups are looking to partner with leading investors to diversify their operations into new markets, of which the Asian market would be the most promising.

- After a run up in commodity prices till 2008, corrected price levels offer healthy entry levels again related to the investment in productive land and the development of forestry projects, meat production, dairy production, soy and cereals, rice, fruits, fishing and more niche oriented opportunities in wine, olives, apiculture, and nuts.

- Areas defined by strong natural advantages to be developed include climate and logistics related areas.

-Latin America is already a leader in the use of alternative energy and fuels and countries like Brazil are already the most efficient in the generation and use of bio-diesels and ethanol.

-Substantial investments in bio-fuel plants are being made and due its advantages in terms of crop yields (climatically and physionomically defined, not only in terms of quality of the earth but also related to the advantageous water resources), this is a sector where the region will lead the way. Additionally, investments in wind farms are coming on stream.

- Uruguay as entry port to the region offers opportunities for the installation of assembly plants and service centers in its free trade parks<\/b> for products that are rapidly gaining import market shares (Asian cars, motors, parts assembly, software development and services).

Mining and extraction: granite extraction and marble and granite processing, as well as mineral mining are amongst the great opportunities in the region.

The real estate sector provides ample opportunities as markets have developed with limited participation from institutional funding providers and with very low leverage levels. Niche opportunities exist related to sustainable tourist development, where the region offers unique beauty with Patagonia, the Andean highlands, the wine regions, the oceanic coasts with abundant wild life.