Capital funds are, in a nutshell, those investment vehicles that bring together the contributions of various investors and seek to identify opportunities to put their money to work and put a series of resources to obtain financial returns.
According to César Rodríguez, the investment manager of the private equity fund Inversor, these businesses are done within a defined time horizon that is generally 10 years. However, this may vary depending on the type of the fund.
“There are different types; real estate funds, infrastructure funds, agroforestry or hydrocarbons. On the other hand, there are also multisectoral funds”, he points out.
These capital funds are in charge of investing in different ranges of the existing capital chain. “There are some that invest in early phases, others that do so in medium growth phases and others later, in the consolidation of the company,” adds Rodríguez.
This investment is made jointly in the assets that the management team considers appropriate to obtain the maximum possible return, always based on an investment strategy that has already been previously defined.
“We are looking for investors who believe in our investment theses so that they commit their resources, deliver them to us, and we can find where to invest. That’s when we go out looking for opportunities,” he says.
For his part, Juan Pablo Díaz, director of the private equity fund Impacta, adds that “there are two types of investments, in public companies or private companies; The public is the one that is listed on the stock exchange and the private ones, the ones that are not listed. “
In this sense, he specifies that in private investments, there are different categories, ranging from companies that are starting up to large companies that are not in the stock market.
Likewise, he says that in recent years impact inverters have become very popular. These, he adds, are those that are aligned with the challenges of sustainable development.
“An impact fund is one that is framed in the 17 aspects of sustainable development and measures economic profitability and environmental profitability,” he says. Rodríguez says that investments do not have to be purely monetary and that, sometimes, they can also be intellectual; facilities in contacts, labour or knowledge.
Díaz defines the relationship between the fund and the company as a “marriage with a divorce sung”, this because from the beginning it is known that both parties seek a benefit, but that eventually, this relationship will end.
What are the funds looking for?
Now, there are different aspects that these groups have in mind when looking for where to put their money or knowledge available.
And just as some ventures sometimes come to these funds seeking support, in the same way, collective investment institutions have mapped the market to choose those companies that have a better projection and represent a good opportunity.
“There’s a little bit of everything. My natural market is the companies that are in the EAN University –which sponsors the Impacta fund–, those that come from employees, students or graduates. But we have also developed some alliances with firms specialized in structuring companies with these characteristics, “Díaz points out.
What they are looking for from the bottom are those companies that handle issues of the circular economy, gender equality. “There I look for business, or in that scenario, companies come to me. On the other hand, some come through the page, interested in showing what they do”.
“We seek the triple value account, economic, social and environmental, and that its sales are below 3,000 million pesos a year. Because what we do as a fund is put smart capital into companies, “adds Díaz.
For his part, Rodríguez is clear that for investment funds that are looking for startups that are growing and have sales of between $ 1 billion and $ 20 billion, they expect startups to be very clear about what they do and why they do it.
“We need companies to be clear about what they do, what their assets are, the competition, the customers and how to generate value,” emphasizes Rodríguez.
And he adds that there has been a growth in the ecosystem of entrepreneurs that has led companies to be more prepared to sell their idea and business.
However, Díaz warns that it is important that companies create themselves more from the business opportunity than from the need that unemployment brings. “There needs to be decisive and frontal support for funds that help companies that can accelerate their growth and have a positive result in society.”