SAO PAULO, May 23 (Reuters) - Brazil's private equity and venture capital industry association expects investments by funds to rebound in 2019 due to reduced risk of exchange rate volatility, one of its board members said on Thursday.
"The exchange rate now is good for investments," board member Fernando Borges said. "Last year, uncertainties brought by Brazil's presidential elections hindered investments."
In 2018, investments by private equity and venture capital funds dropped 11.2% from a year earlier, 13.5 billion reais ($3.3 billion), according to Abvcap, as the association is known.
The association did not give an investment volume estimate for 2019. Abvcap's head only said it would likely to be "much higher" than in 2018.
Brazil-dedicated funds closed 2018 with 39.3 billion reais to invest in assets, the same volume of resources funds had in 2015, a record year for private equity and venture capital funds.
Private equity and venture capital funds raised reached 13.6 billion reais for investment in Brazil in 2018, up 161.5% from 2017.
($1 = 4.0383 reais)
(Reporting by Carolina Mandl; Editing by Richard Chang)
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