Citigroup, Antfactory Pledge US$100M for LatAm Net

FORT LAUDERDALE, FLORIDA (07/11/2000) - Although observers have noted a slowdown in investments for companies in Latin America's Internet market, CVC Latin America and U.K.-based Antfactory Holdings Ltd. announced on Monday they're partnering to invest US$100 million for e-commerce companies in the region.

CVC Latin America -- the Citigroup Inc. unit devoted to private equity and venture capital investments in the region -- and Antfactory announced the creation of Antfactory Latin America, pledging $50 million to launch the company and another $50 million to come later, the companies said in a statement.

Antfactory Latin America will serve both as investor and as operating partner in the companies it funds, offering money as well as expertise in areas such as recruitment, legal issues, accounting, marketing, public relations and finance, the companies said.

Antfactory Latin America has offices in Brazil, México and Argentina, the region's three largest Internet markets. The company has already agreed to invest $6 million in a business-to-business portal focused on health care whose name wasn't disclosed.

Last week, financial services firm Hambrecht & Quist issued a report predicting widespread consolidation in Latin America's Internet market because there are too many companies in market, and despite its fast growth, it still has a relatively small number of Internet users and e-commerce revenue. [See "LatAm Net Market Grows, But Consolidation Expected," July 6.]Antfactory Holdings, founded in Oct. 1999, is based in London and has offices throughout Europe. It can be reached at +011-44-20-7947-5000 or at CVC Latin America was launched in late 1997 and is based in New York and Santiago, Chile. Citigroup is at +1-212-559-1000 or at

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