We maintain an active dialogue with local businesspeople, investment banks, and advisory boutiques, as well as legal and accounting advisors.
We also leverage referrals from our network of family offices, J.P. Morgan alumni, portfolio companies, and professional organizations.
With 20+ years of combined experience in Argentina and in the rest of Latin America, we draw upon a number of sources to replenish our pipeline:
The small- and mid–cap segment, which is our primary focus, is characterized by a supply and demand imbalance of investment and financing capital.
This dynamic generally allows us to preempt competition and to pursue transactions only when in exclusivity.
We follow a disciplined valuation approach, seeking a substantial margin of safety in the investments we make.
We prioritize opportunities that offer the ability to dividend cash flows in order to de-risk throughout the life of the investment.
We primarily pursue control transactions in partnership with senior management and/or incumbent shareholders (e.g. founders).
Acquiring controlling stakes allows us to define the most relevant corporate actions including, but not limited to, timing of divestment or changes in management, if necessary.
Structuring transactions with continued ownership by incumbent shareholders (who typically leave a majority of their wealth tied to the investment) and/or management aligns incentives and provides downside protection to our investors.
We create value throughout the investment cycle by serving as a value-added, proactive partner to proven management teams.
Design, implement, and adjust strategy in conjunction with key stakeholders.
Track performance goals through a limited set of relevant metrics.
Understand and control strategic risks.
Invest in initiatives and assets that have long-term value creation potential, carefully measuring return on investment.
Execute M&A to drive growth, efficiency, and profitability and to heighten barriers to entry.
Ensure our portfolio companies develop effective, driven leadership, complementing from our external network as needed.
Improve management processes and empower management to make decisions and have accountability, linking performance and compensation.
Enhance cash-flow generation through active working capital cycle
Conduct strict cost analyses, invest in efficiencies, and reduce overhead.
Monitor business plan creation and implementation.
Employ leverage in a prudent manner.
Optimize dividend distribution policy to mitigate potential currency volatility and devaluation.