Equity International eyes Chile for investment

NEW YORK (Reuters) - Chile could be a new investment area for U.S. private equity firm Equity International, as attractive opportunities in retail and logistics trump the low-risk, low-return environment, its top executive said on Wednesday.

"We've always been captivated by Chile. It's the Switzerland of Latin America in many ways," Equity International Chief Executive Gary Garrabrant said at the Reuters Latin America Investment Summit in New York.

Garrabrant visited Santiago last week and was struck by the number of cranes building high-rises in the capital.

But Garrabrant said in the past he had been somewhat frustrated with Chile because it's expensive compared with other Latin American countries and Equity International prefers taking on a little more risk to maximize returns.

Equity International's investments in Mexican homebuilder Homex (HXM.N: Quote, Profile, Research, Stock Buzz) (HOMEX.MX: Quote, Profile, Research, Stock Buzz) and Brazilian real estate developer Gafisa (GFSA3.SA: Quote, Profile, Research, Stock Buzz), have yielded high returns for the company.

But he said now things are changing even though Chile is still one of the lowest-risk investment environments in the region due to economic and political stability as well as market-friendly policies.

"There are interesting opportunities in Chile at this moment. Investment returns are favorable, relative to the risk," Garrabrant said.

With a slow rate of inflation, low interest rates and a stable currency, there are businesses in retail and what Garrabrant termed logistics, that "for the first time in five to seven years are attractive."

Garrabrant said Equity International is interested in a Chilean company that is possibly involved in distribution and logistics.  Continued...