The move comes as Brazil’s middle class continues to expand with 30 million more people moving out of poverty over the past decade. This has led to increased investment in consumer-based industries, including retail.
Carlyle has refused to say how much it paid for the stake in Ri Happy, but has reportedly pledged to invest $116m in the company over the next three years.
Although the toy market in Brazil looks to have doubled over five years to 2010, spending on toys is still only one third of that of Mexico. According to Carlyle, 70 per cent of toy retailers are concentrated in the larger south eastern cities like São Paulo and Rio de Janeiro, but there is potential to expand into the north-east of the country .
Carlyle has also made investments in package holidays, health insurance plans, dolls houses and lingerie.