Strategy
Linzor’s partners have selected and managed investments using a consistent set of criteria since they entered the private equity sector.
Regional Geographic Focus
- 4 main target markets: Mexico, Chile, Colombia, and Peru
- Opportunistic approach in selected smaller LatAm economies (e.g. Uruguay, Ecuador) and complementary geographies (e.g. Spain)
- Strong local networks allow for a high rate of proprietary deal sourcing
Middle Market Companies
- Significant depth in the middle market (companies valued between US$75 and 400 million), offering a greater number of investment opportunities
- By multiplying a middle market company by 2x or 3x during our holding period, the company attracts greater interest from potential buyers at exit
Active and Responsible Investors
- Focus on control investments in order to implement operational value-added initiatives and manage exit windows
- Active involvement in company’s strategy and management, well beyond the mere provision of liquidity
- Implementation of a robust ESG & impact strategy, with management compensation partly tied to the achievement of ESG and impact goals
Disciplined Underwriting and Structuring
- Use of realistic base case assumptions that take into account specific risks, including FX
- Conservative capital structures. Selective use of recaps to increase returns (e.g. Uno Salud, UTEL)
- Strong instrumentation of liquidity rights (e.g. drag rights)