J&A Cross-Border Private Capital Markets Report: Latin American Investors and Media Investments
J&A Cross-Border Private Capital Markets Report: Latin American Investors and Media Investments
Forecasts show that media and entertainment industries are growing at a compound annual growth rate of 9% between 2020 and 2025, reaching a market value of $3 billion. Hispanic media will rise proportionally to this percentage. In 2020, over 10% of all media was translated to Spanish. In this report, Jahani and Associates cover the most notable developments in this sector, including the trends for Hispanic media, the investment deals in the space, and forecasts moving forward.
Hispanic Marketing Trends
- Mobile aggregators facilitate the implementation of fractional vehicle ownership by creating on-demand access to transportation services.
- Most mobile aggregators, such as Uber, do not own the vehicles within their fleet and consequently, have been able to scale quickly without significant capital expenditure.
- Large mobile aggregators are vertically integrated into fleet and data management. Uber’s engineering and data department1 has deployed thousands of micro servers to process the requests and data behind the millions of rides globally every day.
The Rise of Shared Mobility
Latin American investors were active in 2020 and invested consistently through all quarters in media companies.
FIGURE 1: Investments Over Time
- Latin American investors contributed $7 billion for deals in media companies in 2020, with 80% of the deals being venture capital investments.
- Kaszek, an Argentinian venture capital firm, had the highest deal count. This firm invested in 10 different media companies.
- A total of 81 Latin American private equity and VC firms invested in 102 media companies from all over the world.
- Capital raised in Q4 exceeded $4 billion, with over $700 million raised by VC firms and more than $3 billion in M&A transactions.
Geographic Trends in 2020 for Latin American Investors in Media
Latin American investors have been involved in cross-border activities in the capital market for media companies. Most of the deals they have been involved with are in North American or European deals. The capital markets and expenditure in media and marketing firms prove how influential the ties are with these geographies. Below is a breakdown of the investments by Latin American sources by region.
FIGURE 2: Company Count Breakdown by Geography
- Over 50 media companies within the USA and Canada completed capital market transactions with Latin American investors in 2020.
- Of these deals, 76% were with North American companies. California received capital for 20 companies, New York for seven companies, Texas for six, and Florida for five.
- Over 66% of the 161 European media deals with Latin American investors were with Spanish companies. The United Kingdom holds 18 media deals as well.
- Asia and the Middle East only had six deals with Latin American investors in media companies—China had two companies and the United Arab Emirates had two also.
Expected Trends for Hispanic Media
FIGURE 3
- In the United States, 17% of the population is Hispanic. It is expected this number will rise. With internet penetration increasing, so will Hispanic use of devices in the region.
- Each year, more Latin American investors are involved in capital markets worldwide. J&A forecasts that over 190 Hispanic investors will be active in private placements for media companies in 2021.
Over 80% of the Hispanic population actively use devices connected to the internet. Hispanic inhabitants in the USA are expected to grow faster than any other population. With media being targeted more towards this population, companies can increase their sales and media coverage online.
Sources: Statista, Pitchbook.com, Colibri, Nahrep, and Hispanic Unity
