When we created PEXO VENTURE, we created a new kind of venture firm - one that's based on teamwork, superior service to entrepreneurs and an intense dedication to building companies of lasting value.
Why choose PEXO VENTURE?
- Extensive network of local and international contacts
- Partners plugged into the business community
- Specific management and investment experience developing Latin American companies into global market players
- An entrepreneurial DNA that allows us to work closely with founders and management teams
Our Philosophy
PEXO VENTURE believes that investing in Latin America has to primarily be based on an operating philosophy and not a financial engineering philosophy. Investing for PEXO VENTURE is based on this principles:
Focus on increasing the Value
PEXO VENTURE focuses on increasing the value of the companies in which it invests by optimising the company’s strategic posture and their operating performance. This is done through the direct and personal involvement of PEXO VENTURE’s general partners with the management of each portfolio company. PEXO VENTURE develops operating and strategic plans during the acquisition process and closely monitors their applications and results. Consequently, projects are evaluated first and foremost on the basis of the clarity of the opportunity, probability of materialization and size of the value creation potential they represent.
Emphasis on Quality Management
The quality of management at each portfolio company is a key component in the value creation process. The ability to identify, recruit, train and/or retain management teams drawn from the vast network of contacts available to the partners of PEXO VENTURE is a significant competitive advantage in the private equity field.
Regional Capability
PEXO VENTURE has the capability to originate opportunities, make investments and operate companies on a regional, multi-country basis. A regional capability and focus is also essential in order to provide the investment flexibility necessary to adapt the investment strategy to the priorities dictated by the changing macroeconomic circumstances prevailing in the different countries within the region.
These capabilities are available as a result of the exceptional regional expertise of the general partners and the network of contacts they have built during their extended careers in the region. PEXO VENTURE is based in Latin America and works exclusively in Latin America. We believe that PEXO VENTURE is the only Latin American fund with regional, multi-national capabilities, which is operated by Latin Americans who live in Latin America.
- We get involved
- We are flexible
- We are proactive
- We look for solutions
- We are result oriented
- We care about ethical standards
- We work for our clients who reward us for value added
Focus on increasing the Value
PEXO VENTURE focuses on increasing the value of the companies in which it invests by optimising the company’s strategic posture and their operating performance. This is done through the direct and personal involvement of PEXO VENTURE’s general partners with the management of each portfolio company. PEXO VENTURE develops operating and strategic plans during the acquisition process and closely monitors their applications and results. Consequently, projects are evaluated first and foremost on the basis of the clarity of the opportunity, probability of materialization and size of the value creation potential they represent.
Emphasis on Quality Management
The quality of management at each portfolio company is a key component in the value creation process. The ability to identify, recruit, train and/or retain management teams drawn from the vast network of contacts available to the partners of PEXO VENTURE is a significant competitive advantage in the private equity field.
Regional Capability
PEXO VENTURE has the capability to originate opportunities, make investments and operate companies on a regional, multi-country basis. A regional capability and focus is also essential in order to provide the investment flexibility necessary to adapt the investment strategy to the priorities dictated by the changing macroeconomic circumstances prevailing in the different countries within the region.
These capabilities are available as a result of the exceptional regional expertise of the general partners and the network of contacts they have built during their extended careers in the region. PEXO VENTURE is based in Latin America and works exclusively in Latin America. We believe that PEXO VENTURE is the only Latin American fund with regional, multi-national capabilities, which is operated by Latin Americans who live in Latin America.
Partners
PEXO VENTURE is an interdisciplinary team of entrepreneurs and professionals that works together on every deal we do. We believe the cross-pollination of ideas and expertise among our team members creates stronger companies with broad market reach.
The following values are the basis of our action:
The following values are the basis of our action:
- Integrity and honesty
- Confidentiality
- Clarity and transparency
- Commitment to professional and projects
- Professional competence
Where we Invest
What we look for in a company
The common thread that connects all of the PEXO VENTURE portfolio companies is the quality of the underlying assets. PEXO VENTURE invests in companies who own assets that when deployed with a focused strategy will achieve a sustainable competitive advantage in their markets. PEXO VENTURE will also evaluate investments in companies that enjoy strategic market advantages, but have been burdened by inappropriate capital structures.
Sectors
The PEXO VENTURE investment strategy is not sector specific, but rather philosophy specific. PEXO VENTURE will invest in opportunities in which it can apply its management skills to create real, sustainable value,and which will be recognized by potential acquirers.
Geography
Latin America is our backyard. PEXO VENTURE has evaluated and has the capability to execute opportunities from Mexico to Tierra del Fuego. PEXO VENTURE has operated portfolio companies in Argentina, Brazil, Chile, Peru, Uruguay, Paraguay, Bolivia and Mexico.
The common thread that connects all of the PEXO VENTURE portfolio companies is the quality of the underlying assets. PEXO VENTURE invests in companies who own assets that when deployed with a focused strategy will achieve a sustainable competitive advantage in their markets. PEXO VENTURE will also evaluate investments in companies that enjoy strategic market advantages, but have been burdened by inappropriate capital structures.
Sectors
The PEXO VENTURE investment strategy is not sector specific, but rather philosophy specific. PEXO VENTURE will invest in opportunities in which it can apply its management skills to create real, sustainable value,and which will be recognized by potential acquirers.
Geography
Latin America is our backyard. PEXO VENTURE has evaluated and has the capability to execute opportunities from Mexico to Tierra del Fuego. PEXO VENTURE has operated portfolio companies in Argentina, Brazil, Chile, Peru, Uruguay, Paraguay, Bolivia and Mexico.
How we work
The Investment Decision
Each potential investment has to be “sponsored” by a PEXO VENTURE professional. It is the sponsor’s responsibility to present the opportunity to PEXO VENTURE along with a preliminary work plan, a proposed transaction budget and a preliminary transaction structure. If the transaction is considered attractive a transaction team, including at least one but not more than two partners, is formed and preliminary analysis is performed. If the preliminary analysis confirms the initial investment thesis a complete work schedule is prepared detailing the timing of the transaction and the resources, including outside advisors, required to execute the transaction.
The work schedule also includes the “key issues” that must be evaluated to confirm the attractiveness of the opportunity. Review meetings are held as answers to the key issues are obtained. Commitment to the transaction is continuously evaluated during the review meetings.
Analyses of transactions follow two separate but, critical paths. One path is the due diligence path used to confirm historical performance, evaluate potential risks and develop an appropriate transaction structure. The second path is the strategic review.
The consummation of any transaction has to be based on a strategic plan. Why do we want to own this company? What can we do with this asset that is not already being done? What are the competitive forces facing this company? How do we face this competition? What do we do on the first day, first week, first month that we own this company? And, how will we exit this investment and create value for our investors.
Once these questions have been answered the transaction is formally presented to the Investment Committee. We work to achieve unanimity in the Investment Committee and will work until it is achieved, or forego the opportunity.
Post Investments
Strategic and Operating plans are valuable only if they are implemented, monitored and updated. The partners of PEXO VENTURE take an active role in the supervision of portfolio companies. It is the role of PEXO VENTURE to provide the managements of portfolio companies with the tools and resources to successfully execute the strategic and operating plans. It is also the role of PEXO VENTURE to continuously evaluate the capabilities of the management and make the difficult but necessary changes when required.
One of the competitive advantages of PEXO VENTURE are the long a deep relationships that the partners have developed over the years with the leading business groups in the countries in which we operate. PEXO VENTURE draws on these relationships to create the most effective and productive Board of Directors for each of our investments. Although PEXO VENTURE enjoys absolute control of its portfolio companies, it has created independent Board of Directors for all of its investments.
Individuals are asked to join the Boards of PEXO VVENTURE based on the specific needs of the portfolio company and on the value added by the member. Our Boards of Directors are active and meet on a regular basis. Board Members are asked not only to sit on the Board, but to take an active role on Operating, Finance, Strategic and Human Resources Committees.
Realizing Shareholders Value
Unlikely more developed markets were realizations are often a matter of price and not of timing, Latin America is characterized by windows of opportunity for value realization. These windows are unpredictable and of varied duration. Value creation in Latin America is, therefore, an issue of creating real, sustainable value.
Latin America is a large and growing market. It is a market which unfortunately suffers significant fluctuations. But it is a market that is too important to abandon. Buyer may leave for a period, but will inevitable be drawn back by the attractive fundamentals.
PEXO VENTURE manages its investments so that they will be attractive at the time that buyers return to the region. We do not mange to show short term, temporary results, but to demonstrate sustainable profitability
Each potential investment has to be “sponsored” by a PEXO VENTURE professional. It is the sponsor’s responsibility to present the opportunity to PEXO VENTURE along with a preliminary work plan, a proposed transaction budget and a preliminary transaction structure. If the transaction is considered attractive a transaction team, including at least one but not more than two partners, is formed and preliminary analysis is performed. If the preliminary analysis confirms the initial investment thesis a complete work schedule is prepared detailing the timing of the transaction and the resources, including outside advisors, required to execute the transaction.
The work schedule also includes the “key issues” that must be evaluated to confirm the attractiveness of the opportunity. Review meetings are held as answers to the key issues are obtained. Commitment to the transaction is continuously evaluated during the review meetings.
Analyses of transactions follow two separate but, critical paths. One path is the due diligence path used to confirm historical performance, evaluate potential risks and develop an appropriate transaction structure. The second path is the strategic review.
The consummation of any transaction has to be based on a strategic plan. Why do we want to own this company? What can we do with this asset that is not already being done? What are the competitive forces facing this company? How do we face this competition? What do we do on the first day, first week, first month that we own this company? And, how will we exit this investment and create value for our investors.
Once these questions have been answered the transaction is formally presented to the Investment Committee. We work to achieve unanimity in the Investment Committee and will work until it is achieved, or forego the opportunity.
Post Investments
Strategic and Operating plans are valuable only if they are implemented, monitored and updated. The partners of PEXO VENTURE take an active role in the supervision of portfolio companies. It is the role of PEXO VENTURE to provide the managements of portfolio companies with the tools and resources to successfully execute the strategic and operating plans. It is also the role of PEXO VENTURE to continuously evaluate the capabilities of the management and make the difficult but necessary changes when required.
One of the competitive advantages of PEXO VENTURE are the long a deep relationships that the partners have developed over the years with the leading business groups in the countries in which we operate. PEXO VENTURE draws on these relationships to create the most effective and productive Board of Directors for each of our investments. Although PEXO VENTURE enjoys absolute control of its portfolio companies, it has created independent Board of Directors for all of its investments.
Individuals are asked to join the Boards of PEXO VVENTURE based on the specific needs of the portfolio company and on the value added by the member. Our Boards of Directors are active and meet on a regular basis. Board Members are asked not only to sit on the Board, but to take an active role on Operating, Finance, Strategic and Human Resources Committees.
Realizing Shareholders Value
Unlikely more developed markets were realizations are often a matter of price and not of timing, Latin America is characterized by windows of opportunity for value realization. These windows are unpredictable and of varied duration. Value creation in Latin America is, therefore, an issue of creating real, sustainable value.
Latin America is a large and growing market. It is a market which unfortunately suffers significant fluctuations. But it is a market that is too important to abandon. Buyer may leave for a period, but will inevitable be drawn back by the attractive fundamentals.
PEXO VENTURE manages its investments so that they will be attractive at the time that buyers return to the region. We do not mange to show short term, temporary results, but to demonstrate sustainable profitability
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