Last year, private equity activity in Latin America appeared to be approaching boom-era levels.

Buyout firms ploughed nearly $8 billion in 237 investments in the region, according to private equity trade body the Latin American Private Equity & Venture Capital Association, known as Lavca. This was only marginally lower than the peak of the market in 2007, when firms put just over $9 billion to work. But so far this year it is a different story, according to industry figures.