"The Portland PE team approached our transaction in a very transparent and collaborative manner. We chose them because we expect them to be partners and more than simply a source of growth capital."
Luis Jose Asilis,
President and CEO
Metro Country Club
Strong Indigenous Businesses
Strong indigenous businesses drive sustainable impact.
We are interested in businesses that have the capability to scale and grow to become significant through organic or acquisitive growth, and which may eventually be attractive to larger incumbents or multi-nationals.
What are we looking for?
A strong business. Clear evidence of a business in an attractive market sector that is supported by growing demand, strong cash flows, and significant revenues.
Talented management. We seek out excellence in all the people we work with.
Simplicity. A great business can be distilled to a simple proposition without losing its attractiveness. If it takes more than two sentences to explain the business, how can it be effectively communicated to customers, employees, and shareholders?
Some related questions that we ask
- What business is the company in?
- What is its mission?
- What are its competitive advantages?
- How will the company be financed, in the intermediate term and through to self-sufficiency?
- What milestones must be met to ensure success?
- How will the company be valued if it's successful?
- What is the likely exit strategy?
- What is the most plausible worst case scenario?
Scalable Opportunity. We are always looking for businesses in areas that have secular growth drivers. We then vet with a bias to those businesses that can grow operating margins while increasing revenues. These types of businesses are by definition scalable and are attractive as they offer the potential for earning high profits.
In addition, there are specific opportunities in emerging markets with the potential to become a regional platform through either organic growth or acquisitions. We also describe these businesses as scalable.
Some related questions that we ask ourselves
- How does this business double its sales?
- Is that quantum of sales feasible in its current markets?
- What market share does it need to achieve that number?
- How much additional spend is required to achieve that number in terms of personnel, overhead, and other capex?
- What would be the next logical country to expand into?
- Who are the key competitors?
- Are those competitors merger or acquisition candidates?
- During expansion what cultural factors might come into play?