The growing interest among private equity firms in Brazil has been reinforced again this week, after one of Spain’s biggest buyout firms launched an office in Sao Paolo and a top-four accountant published a report backing investment in the country.

Mercapital, run by Javier Loizaga Jimenez, former chairman of the private equity industry's European trade body, has opened an office in Sao Paolo to help its Spanish portfolio companies expand into the region.