GEM will give the capital injection via a subscription of Laep’s shares but even so, Laep would not reveal just how many shares are to be subscribed in the offing. However, Laep did say that it plans to utilize the accrued funding from GEM subscription to aid its development through funding investments and acquisitions.

Should the deal go through, this will be the second time GEM is being approached to for a capital injection by Laep after having been called upon for a similar offer back in June when it gave 126 million Brazilian reals to the company via a subscription of 109.7 million Laep shares. GEM was begun in 1991 and has since grown to a $3.4 billion alternative investment group and is involved in the management of a varying amount of investment vehicles that are targeted on emerging markets all over the globe.

In May 2006, Laep successfully purchased Parmalat Brasil after the collapse of its Italian parent company, Parmalat SpA. At the time of the acquisition, Parmalat was still under restructuring in the domestic Brazilian courts after the failure of its parent in the 2003 crisis.

Laep Ltd’s principal activity is to invest in companies engaged in the production and distribution of dairy products. It deals with production, processing, marketing and distribution of dairy products and other food products like: cakes, cookies, tea and juices. The Group also operates with private equity investment, leasing, cattle raising and agricultural and real estate sector. It owns brands like: Parmalat, Gloria, Alimba, Lacesa, Kidlat, Lady, Ibituruna, Pocos de Caldas and Paulista.

Laep Investments Ltd., a private equity fund that controls Parmalat, rose 14 percent on Wednesday, and Parmalat spiked as much as 26 percent. In January, JBS, Brazil’s giant food company had been speculated for a potential Pramalat Brasil acquisition, the company Laep Ltd controls. Laep reiterated that it would be going on an investment spree, mainly expected to target acquisitions in the country and investment opportunities that would help expand the company.

Capital Dynamics is a Swiss company that offers advise to private equity investors and has thus far, advised funds summing up to over $21 billion under its management. The company reported Thursday it will commence its Sao Paolo operations with an office to be headed by its Vice President, Filipe Cerqueira Caldas. Currently, the Swiss company has seven other offices and expects that its new operations will enable it get co-investment and clean energy investment opportunities, in addition to building links with other domestic fund managers.

The Latin American market has attracted interest from many funds such as the May investment by UK based Apax Partners with the acquisition of a 54.2% stake in Tivit Terceirizacao de Tecnologia e Servicos. The $485 million investment in the Brazilian Stock Exchange Listed information technology and outsourcing Services Company marked Apax entry into the Latin American market.

In the meantime, co-founder and managing director, The Carlyle Group, David Rubenstein said emerging markets like Brazil’s are currently very attractive areas for private equity investments, with Advent International concluding its fifth fund worth $1.65 billion in Latin America in April, marking the Continent’s biggest fund to date.  At the same time, reports surfaced that an American buyout company, Warburg Pincus plans to re-introduce its presence in the country with an office opening in Sao Paolo. The company closed its Brazilian operations office in unknown circumstances.

Capital Dynamics Head of the new Brazilian Sao Paolo office, Caldas said the office is proof of the company’s growth expectations, reiterating the company’s confident nature on Latin America’s vast opportunities, coupled with its commitment to the continent. He said that the office, together with its domestic investment professionals in the country will enable the company recognize and expand domestic business networks.

In April, the Latin America Venture Capital Association (LAVCA) reported in a survey that private equity and venture capital investment in the continent fell less in 2009 when compared to other global markets. According to LAVCA, Latin American investments peaked at $3.3 billion in 2009, a 29% fall from 2008, whereas fundraising fell 43% to $3.6 billion.