Private capital activity—private equity, private lending, and venture capital—saw a clear decline from the record high reached in 2021, with a 15% contraction. Despite the decline, the $41.8 billion recorded in 2022 represents a level significantly higher than those reached in the past decade, more than doubling the amount reached in 2019.

Between 2021 and 2022, there have been interesting changes in the share of each of these types of private equity. 

Figures from the Latin American Private Equity and Venture Capital Association (Lavca) show that in 2022, private equity investments continued to dominate, with a slight decline from US$29.9 billion in 2021 to US$28.2 billion in 2022, while venture capital investments fell sharply, from US$15.9 billion to US$7.8 billion. Private credit investments, meanwhile, jumped from US$3.3 billion to US$5.8 billion, reflecting in part the search for alternative sources of financing in the face of tightening bank lending conditions. 

The infrastructure sector, including energy and telecommunications, attracted the most investment.