We have developed a methodical investment approach, with a well-honed process that is highly coordinated across offices.
Advantaged Sourcing
We originate deals from a combination of the partners’ extensive relationships and networks, the investment banking community, and to a lesser extent, other funds and consulting and accounting firms. Historically, a high percentage of our deal pipeline has consisted of proprietary opportunities reviewed exclusively by Linzor, leading to a competitive edge in origination.
Having a local presence is essential when targeting middle market companies where the majority of owners and management are local. Given that most Latin American markets still lack deep networks of intermediaries, many deals are primarily sourced from trusted relationships with the sellers.
Disciplined, Institutionalized Process
We follow a disciplined, institutionalized approach to assessing investments, refined over the course of decades investing in the region both at Linzor and at larger financial institutions.
Investment opportunities are subject to a rigorous and extensive analytical process, with the involvement of at least two partners per deal. All investments are discussed at length in weekly committee meetings, with the final investment decision subject to unanimous vote by the partners.
Partnerships With Industry Executives
During the preliminary investment review, we gather the necessary resources to enhance our knowledge of the target’s industry and business, and uncover the opportunities required to generate target returns.
These resources typically come from the wide-ranging network of industry experts and operating partners that we have developed over time. Industry experts are engaged as advisors at the due diligence stage and/or invited to join the company’s board or management if the investment is completed.
Alignment With Management
Whether a strong management team is in place or needs to be supplemented, we seek to partner with established teams, providing managers with co-investment opportunities and/or compensation plans based on short and long-term incentives to align interests.
Given the relatively low penetration of private equity within the region, we have been successful in attracting top industry expertise through equity-linked compensation seldom used by strategic players or family groups.
Value Creation Through Operational and ESG Focus
Our value creation comes from operating and ESG improvements and strategic initiatives as opposed to financial engineering and the use of excessive leverage.
We are actively involved in the value creation process in each of our portfolio companies. Our deal teams work closely with management teams to set and implement strategic goals. We can help portfolio companies manage a variety of issues, ranging from implementing new systems and controls to developing expansion strategies and executing integrations post-merger.