Conventional development models refer to two sectors, public and for-profit private. Massive growth of nonprofit private activity undermines that picture. Latin American think tanks exemplify a nonprofit privatization that has an enormous impact on development and remolds inter-sectoral relationships overall. Four major dynamics account for the spectacular growth of the region's nonprofit think tanks. Three push factors are state repression, state weakness, and public university problems, and, as epitomized by financial supply, a pull factor is also crucial to attract nonprofit growth. To conceptualize its findings, this article considers public failure theory. Unhelpful regarding the pull factor, the theory otherwise works reasonably well, especially where there is visible movement from the public to the nonprofit sector. Beyond that, the evidence suggests ways to broaden the theory. Even a broadened formulation cannot fully capture the remarkable diversity and vitality of the growth in Latin America's think tanks. But we are able to identify and analyze the key growth factors that blend together to produce particular institutional and national configurations.