Approach
We seek to acquire majority stakes in high-growth companies in Latin America. The Colca Capital team performs a detailed fundamental analysis of each potential business, focused on identifying true market leaders and best-in-class companies. Following our strategic investment into the business, we dedicate ourselves exclusively to accelerating growth, maximizing performance, and generating enduring value for all stakeholders.
Characteristics of the Transactions
Control with 75% to 100% participation
Flexible structure that adapts to the Seller's needs
Carve out of family real estate assets, establishment of brand royalties, additional payments to Sellers for post-purchase company outperformance, rollover equity for Sellers (with or without put and call windows), among other bespoke ways to align incentives for both Colca Capital and the Sellers
Opportunities for Sellers to remain involved in the business in an operational or board capacity, depending on interest
Straightforward and highly confidential transaction process that typically lasts 90-120 days from executing an NDA and receiving basic company information
Industry characteristics
Contractually recurring revenue with B2B, blue-chip customers
Large market size that grows equal to or greater than country GDP
Fragmented industry
High entry barriers
High value-added products and services representing low share of wallet for customers
Few material threats or opportunities arising from changes in technology, market dynamics, or government regulation
Company characteristics
Market-leader, usually top #1-2 players in operating countries
Attractive business model with a sustainable, durable, and scalable competitive advantage
Recurring and stable revenue with low customer concentration
Profitable in the last 3 years with stable cash flow and margins
Strong executive team with relevant industry expertise
Organic and inorganic growth opportunities, including entry into adjacent countries and markets