Alta Growth Capital makes growth equity investments in Mexican middle market companies that are benefiting from Mexico’s domestic growth and demographics. Typically, we look for companies that have between US$10 and US$100 million in revenues and we invest between US$10 and US$20 million in each portfolio company. We will take both majority and minority positions, as well as invest in buyouts; although in every case we will need a clear path to exit.
In addition, Alta seeks to invest in established companies with proven operational track records, solid management, and strong legal, ethical and accounting standards. As a growth equity fund, our focus is primarily on expansion stage opportunities.
Alta seeks opportunities with all or most of the following characteristics, depending on the investment theme being pursued:
- Demonstrable growth prospects and compelling fundamentals, including sustainable competitive advantages, attractive market potential for their products and services, and sufficient economic upside for Alta to merit the resources required from the investment team.
- Fundamentally healthy operations; we like companies with historical operations and a business model that is working that can take advantage of a growth or consolidation opportunity with an infusion of capital.
- A clear path to liquidity, supported by a careful analysis of key factors including potential for strategic buyer interest and the outlook for listings on the local or foreign stock exchanges.
- Strong free cash flow capable of supporting convertible and similar structures that provide for relatively quick recovery of principal.
- A capable and experienced management team with a clear strategic vision, unquestionable integrity, and the willingness and ability to adjust to unforeseen risks and opportunities.
- Alignment of interests; a management team with equity at risk and financial interests that are fully aligned amongst all partners, and that welcome an active and ongoing engagement by the Fund in the strategic and financial operations of the business.
- Limited reliance on debt at the company level to finance growth.