The objective of Alta is to achieve high absolute returns by pursuing a growth equity, “buy-and-build” strategy through privately negotiated investments in private companies with principal operations in Mexico. Alta acquires significant influential minority positions and controlling stakes in portfolio companies. This may include providing some liquidity to founding shareholders. When investing in minority positions, the Fund will seek certain contractual rights plus a negotiated path to exit. Investments will typically range from $10 to $20 million.
Key elements of our strategy to create value include:
- Create successful partnerships when in minority position. Ensure alignment of interests and common values, negotiate significant role and alternative exit options, and commit to a common vision for the company.
- Comprehensive due diligence. Use of top firms for accounting, legal, and tax due diligence. Inclusion of social & environmental and FCPA due diligence. Extensive vetting of potential partners. Validate business fundamentals and risks with our network of industry and functional experts and with the Strategic Advisory Board.
- Complement management teams with top talent. Leverage extensive network of successful professionals and top headhunters in Mexico. Ensure compensation systems aligned with the shareholders’ objectives.
- Hands-on approach to portfolio company management. Lead strategy development and monitoring system implementation, involvement in strategic initiative implementations, participate in key personnel selection, maintain fluid communication with managers to participate in key operating decisions, and guide institutionalization.
- Ensure optimum value upon exit. Improve portfolio companies appeal to strategic buyers, and establish relationship with potential buyers well before planned exit.