AC Desarrollo aims to identify investment opportunities that will offer suitable returns for investors in the funds that it manages. While there is no predetermined profile for investee companies, the key factors that we look for are the following:
- A management team of qualified professionals with extensive experience within their sector and fully committed to the project. These need not be shareholders in the investee company, although once the investment has been finalised a stake in the shareholding is usually considered desirable.
- Significant business volumes, a competitive position and significant market share within the relevant industry.
- Proven ability to generate profits and a reasonable debt level.
- A realistic business plan with ambitious growth targets, either via organic growth or acquisitions.
- Sectors: AC Desarrollo has no sector preferences and no sector is considered either good or bad. Instead we believe that magnificent management teams with attractive business plans can be found in all sectors. In general we prefer sectors with good growth potential, attractive margins or consolidation opportunities.
- Operation types: depending on the particular circumstances of each company, AC Desarrollo will consider several types of investments, from capital increase operations to buy-outs, either leveraged (LBOs) or not, including coinvestment with the management team (MBO/MBI) and buy and build projects (creating a group via company acquisitions).
- Time frame: the average period that AC Desarrollo holds a position in investee companies fluctuates between 3 and 6 years, although this could be longer if required.
- Shareholding position: AC Desarrollo looks to take significant stakes, either as a minority or majority shareholder, allowing active influence over the strategic decisions taken by the company.