OUR PRACTICE

WHAT WE DO?

We invest in building and growing exemplary companies and exciting projects throughout LATAM in small & midcap segments as well as emerging industries.

On the acquisition or growth side, although we acquire control of the companies we invest in, we do not buy out founders but rather invest in and empower them by enriching each deal with our ownership expertise, leadership and support.

INVESTMENT METHODOLOGY

The BlackRabbitCapital investment methodology safeguards the fund and the integrity of its investments by building up sector-focused projects and creating specialized holding companies within these projects to secure investment flows and gains and ease the workload of Operating Partners by putting together a management team composed of industry experts.

The investment strategy behind our methodology leverages a comprehensive working model driving a deep understanding of business opportunities prior to assigning financial resources. As such, we follow a systematic, 6-step investment process methodology to select the right opportunities for our investors.

SEEK

IDENTIFY

SELECT

NEGOTIATE

PROVE

INVEST

Private leads from our partners and referrals from their unique network reflecting each partner’s sector of expertise; collect non-consolidated, small and mid-cap opportunities.

Identify broken, underdeveloped and non-consolidated (vertical / horizontal) market blocks across the value chain of collected opportunities.

Assess whether the potential target represents an opportunity for our strategic transformation program by analyzing whether we can translate the gaps others failed to notice into value. Qualitative and Quantitative analyses are performed to support the assessment.

Extend a Letter of Intent (LOI) with the deal proposal to the target and terms & conditions expected from it as a return (documentation, equity to be acquired, responsibilities and exit terms). The proposal is non-binding for the fund.

Appoint expert legal, accounting, operational and tax professionals to conduct due diligence and prove the business case and build the potential investment.

Extend a final investment proposal based on the due diligence and business case results. Proposals use either the conditions set forth in the LOI or a completely new offer to limit potential risks and motivate operating teams.

68% remain

14% remain

7%remain

5% remain

2% remain

Our investment approach is based on a disciplined due diligence process that analyses risk while identifying catalysts for increased value. We engage only in friendly transactions and work with talented management teams to achieve positive results.

TARGET SCENARIOS

The expected scenarios for value creation are driven by designing and securing four main levers:

1) Market Gains (e.g. potential increase in price);

2) Scalability Gains (e.g. volume);

3) Operational Efficiency Gains (e.g. technification process improvement); and

4) Sustainability and long-term value (e.g. stable business where ESG and PRI practices can be executed)

All these scenarios fulfill our commitment to ensure that the companies in which we invest, have room for consolidation, scalability and stable practices, including managing risks related to sustainability and long-term profitability for shareholders.

Our Strategic Transformation Program (STP) is the centerpiece that allows us to succeed in our deal execution and growth process. By empowering our deal partners with active mentorship and advice, we prepare them for the expected results during the exit phase.