Latin America - Mecca of Opportunity

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Ephor Group SPM&I is a limited partnership fund that provides liquidity and growth capital as well as management expertise to mid market private companies in Central America.

Opportunity

We are extremely bullish on the opportunities available in many emerging economies. Entire business service industries in these economies are positioned for rapid growth through consolidation and across to additional capital. These businesses are benefiting from a convergence of factors including:

• Positive macro-environment and economic growth conditions/emerging economies
• Robust real estate and infrastructure spending
• Service requirements developing behind infrastructure spending
• Market need for business services
• Lack of middle market financing alternatives
• Entrepreneurial workforces
• Emergent exit opportunities (IPO, multinationals, recapitalization)

In particular we see a strong need for institutional equity and mezzanine financing that provides capital that is simply unavailable in these economies. In many respects, these emerging economies and the environment for investor capital represent a similar set of circumstances of those in North America in the 1970's.

Capital Formation and Capitalization Spectrum

The effect of incomplete financial markets is that they eliminate an entire segment of financial transactions necessary to fully develop the economy. Specific problems include:

• Consolidation financing is not available leaving markets open to bigger, international players rather than home grown solutions
• Illiquidity as mergers and acquisitions have no way to be efficiently financed
• Lack of middle market incubator creates skill and management gaps
• No effective means to accomplish generational transfer of wealth
• Service based businesses lack access to capital and remain highly fragmented
• Economy stratified into ends of the size spectrum – large companies with access to capital and small companies constrained by lack of capital

The time is right to begin an orderly, sustainable investment of mezzanine and equity money into these opportunities. Ephor Group is committed to bridging the gap in Central America between entrepreneurial and corporate businesses both financially and operationally.

Solution

Garry Meier is the founder of the Ephor Group SPM&I fund. Garry is highly recognized as an industry thought leader in the business and technical services arena as well as outsourcing sectors. He is a noted speaker on strategic effectiveness, value creation, industry trends, capital appreciation, performance improvement, outsourcing, and customer satisfaction. Additionally, Garry is an advisor to two private equity firms and two venture firms on their investment strategies and portfolio companies.

The Ephor Group has a history of success creating over $3.5 billion in shareholder value since 1995.

Mr. Meier has assembled an experienced, highly effective, results driven team that illustrates our 120 years of domain, functional sector, and management experience. Ephor Group’s team of consultants, executives, and investors combines cross-industry perspective with deep specialist knowledge.

Ephor Group applies a consistent, time proven methodology to all of our investments. This method moves past the symptoms to diagnose the root problems challenging the business. We stick around for the fix, taking an active role in interim management or board level oversight as the company moves through its performance improvement program.

We create value through financial engineering, strategic management and operational expertise. We ensure success by deploying capital to fund growth within existing lines of business, change of control, consolidations and/or strategic re-positioning

Contact us for a list of current Central American businesses we advise.

Investment

Fund Criteria

Ephor Group SPM&I is seeking to invest in business service opportunities in Central America that meet these criteria:

• Revenues between $1.0 million to $10.0 million
• Banks and asset based lenders are not supplying sufficient capital (especially for exponential growth requirements)
• Limited asset base
• Company fundamentals are sound including some combination of niche protection, market leadership, revenue and/or margin growth and market opportunity
• Operational complexity benefits from strategic and managerial expertise
• Industry segment supports buy-and-build and consolidations
• Revenues generated through business-to-business transactions
• Responds to performance-based management culture

For Investors

Ephor Group SPM&I Fund provides qualified investors an attractive opportunity to:

• Capitalize on strong, proprietary deal flow
• Co-invest in fund opportunities where they strongly match individual limited partners’ investment criteria
• Deploy capital managed by an experienced investment team with an impressive track record
• Diversify overall portfolio with holdings of private companies
• Invest in emerging platforms in the Central American economic opportunity at attractive valuations
• Participate in equity structures typically unavailable to individual investors

For more information, contact Ephor Group. Sitio web de espanol de Ephor Group

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