Overview

At Caoba Capital we strive to create extraordinary value for our investors and partners through a combination of:

  • Winning business model... private equity with very active board involvement to help companies achieve their full potential and critical scale
  • Winning geography... Central America, Mexico and the Andean Pact, booming and neglected so far by leading private equity groups
  • Winning team... balanced set of skills in finance, strategy, operations and executive leadership
  • Winning investor group... a very select group of dynamic investors who bring more than just cash
  • Winning network... strong relationships with a network of world class managers
  • Winning attitude... can-do, committed, fun team

We are focused on this region due to the unique private equity opportunity it represents:

Unique PE market opportunity

Low management sophistication

  • Many cases of unsophisticated management teams and limited bench depth

Free trade agreement with the US

  • Some export-driven industries are thriving, requiring growth capital and expertise
  • Formerly-protected local sectors will need to modernize to compete
  • Increase in travel and service industries

Family business transitions

  • Second- and third- generation owners with limited liquidity, fragmented leadership and/or infighting
  • Professional management viewed as critical for new challenges

Lack of capital markets

  • High leverage with unbalanced tenors and expensive debt
  • Private equity as attractive option to bank debt

Few active regional funds

  • Little equity capital actively looking for investments
  • Families, banks and pension plans flush with cash and limited investment options

Regional integration

  • Rollup opportunities as infrastructure improves and trade barriers decrease
  • Colombia, Mexico, Caribbean also strengthening ties

Increasing foreign investment

  • Creates added urgency for smaller local firms to face new entrants
  • Provides potential exit opportunities

Asian challenge

  • Export industries threatened by low cost Asian competitors
  • Creates opportunities for local distribution, raw material sourcing, and exports that are time critical or have high shipping costs

Private Equity