SouthLight Capital has an extensive track record in executing transactions in LatAm and the Hispanic U.S. involving regional projects/companies through diverse transaction structures, ranging from growth equity to early stage and credit.
SouthLight Capital operates quick capital rotation vehicles through total capitalization; and believes operating market-proven products will not suffice and thus aims to create innovative products adapting to the opportunities generated within the evolving markets.
SouthLight Capital has acquired qualified expertise in LatAm and is now amplifying its mandate to cover the Hispanic Market in North America; SouthLight is managed by a stable, integrated team that has been doing transactions in the region for a period of +14 years and 2 fund cycles.
SouthLight Capital’s investment model centers on the concept of Partnership Capital, where Investees are not deals or Portfolio Companies, but real Partners in developing a Value Creation Plan. SouthLight seeks to take part in active portfolio management and real-time risk management, enabling us to take investment decisions, create value and plan exits; value creation is deeply embedded into our investment process, identifying the critical success factors and key enablers to growth along all our investment process.
The basic guidelines that anchor our investment strategy are fundamentally (i) Impact & Sustainability; (ii) Growth; and (iii) Geographic Focus in the Mandated Region.
At SouthLight Capital we recognize that businesses have a leading role to play for the consolidation of a balanced and sustainable economy in our markets. Through our operation, we aim to support the growth of private enterprises and achieve investment returns, by enhancing market and financial performance alongside sound sustainability practices that also create value for stakeholders. We believe that resilient, long-term financial value can only be attained through the consideration of the reciprocal impacts between business and the economy, environment, and people. We have made this belief one of the cornerstones of our investment strategy and are committed to embracing sustainability on our day-to-day operation. Our approach to Sustainable Investment is underpinned by eight key axioms, that consolidate our commitment to the creation of long-term shared value:
Our investment strategy is aligned with responsible investment principles and sustainability objectives that are consistent with internationally accepted standards and priorities.
We integrate ESG criteria throughout our investment process, alongside financial, legal and comercial considerations for investment analysis and decision making.
We require compliance with ESG minimum standards and promote the adoption of value accretive ESG practices that enhance long term performance of our investments.
We encourage the development of business models, products and services that contribute to the achievement of the UN Sustainable Development Goals (SDGs).
We actively engage with Partner Companies and Investees to monitor compliance with sustainability commitments and influence adoption of sustainable initiatives
We manage sustainability performance of our Partner Companies and Investees, and our own strategy, based on material key performance indicators aligned with industry standards and best practice.
We keep current with leading industry standards and participate in sectorial initiatives to contribute to the adoption and collective knowledge for sustainable investment.
We foster an honest and constructive dialoque with our stakeholders through formal reporting and encourage Partner Companies to publish integrated reports in alignment with globally recognized standards.
We pledge to work towards incorporation of 5 sustainability themes into the management of our investments – to the extent possible as per each investments’ characteristics – as well as within our own operation as investment managers.
SouthLight Capital focuses on growth companies in Latin America, including the Pacific Alliance, Brazil, and others, as well as businesses located in the United States that cater to the Hispanic community.
Under-investment across several sectors in Latin America and the Hispanic US, including distribution & logistics, financial services (fintech), education & health, consumer retail, and export sector, among others, presents a large universe of potential targets with sizeable, profitable growth opportunities requiring capital and expertise in the region.
SouthLight Capital will particularly focus on businesses that are well advanced in the digitalization technologies and those with a clear gap between supply and demand.
We believe that the strong fundamentals of the region will translate into attractive opportunities across a wide range of sectors.
Strong Environment for Companies with Proven Business Models and Seasoned Managers
Favorable Demographic Profile
Large population base of 646 million1 (approximately twice the population of the U.S.) and a growing middle class with disposable income that is expected to grow at a 5.5% rate between 2022-20252
Weighted average age of 313; 9 years younger than the Developed Markets median.
Population will be reaching their peak acquisition power as they enter a prime age for discretionary consumption.
Regional Trade Integration
Grow and develop companies that can be scaled up to supply the region and the U.S.
Labor force amounted to 315 million as of 2019 and is expected to grow to 111 million by 20214 with an expected CAGR of 0.8% between 2022-2025, while maintaining a low unemployment rate of 8.0%5
Rising digital and financial inclusion
Internet penetration and banked population grew from 39% to 63% and from 39% to 55% from 2011 to 2017, respectively6
Sources: (1) World Bank, (2) The Economist Intelligence Unit (“EIU”), (3) United Nations, (4) World Bank, (5) EIU, (6) World Bank,
Focused on achieving a diversified portfolio of investments across geographies, industries, and deal type on the middle-market, SouthLight Capital leverages the Team’s expertise operating in LatAm and the U.S. Hispanic Markets, to create a versatile product offering focused on regional capabilities, resulting in unique risk profiles through a holistic platform exploiting untapped potential by identifying niche sectors with supply-demand gaps, operating and transacting through a wide range of products:
Diverse and Experienced Team: Comprised of 14 investment professionals led by four managing partners: Miguel Angel Olea, Hector Martinez, Eduardo Cortina and Gerardo Mendoza. The Team is headquartered in Mexico City, Mexico with a secondary office in Lima, Peru. The Team also has a presence in Bogota, Colombia.
Local Presence: Extensive local investment expertise, knowledge of the local language and deep understanding of cultural and business norms in each market.
Pedregal 24, 8-801B
Molino del Rey, 11040
Mexico City, Mexico
+52 55 4164 0925
Av.El Derby Nº 055
Torre 2 Of. 605
+511 255 6300
Calle 100 No. 13-76 piso 3