Private Equity in
Puerto Rico:
Building an Ecosystem
Laura Cantero, Grupo Guayacán
Alex Borschow, Semillero Ventures
Asociación de Profesionales de Finanzas
January 25, 2017
What is Private Equity?
 Private Equity (PE) is equity that is not
publicly listed or traded.
 The PE industry consists of individuals and
firms that invest directly into private firms
or perform buyouts of public firms with
plans to take those firms private.
 PE investments are less liquid than public
equities, have a longer investment
timeframe and may require greater levels
of engagement from investors.
Investing in Private Equity
 Who invests in PE?
• Institutional investors (pension funds, foundations, insurance co’s, endowments)
• High net worth individuals
 Why invest in PE?
•
•
•
•
•
Strong match for long-term portfolios
Historically strong returns
Potential for high rates of return
Diversification
Phased capital deployment
 How can you invest in PE?
• Direct investments
• Fund investments
Capital for Every Stage
Risk
Risk
Building a Private Equity Ecosystem
Deal Flow
(Quality/
Quantity)
Capital
(Institutions
&
Individuals)
Investment
Vehicles
(Funds)
People
(Management
Talent)
Essential Components
Educated
Investors
Policy
Framework
About Grupo Guayacán, Inc.
GGI is a private sector driven nonprofit organization
founded in 1996 by Enrique Adsuar González with a unique
model that couples private equity investment with a series of
programs aimed at developing, strengthening, and
advancing Puerto Rico’s entrepreneurial ecosystem.
Our Goals
1. Advance Puerto Rico’s long-term sustainable economic
development through entrepreneurship and access to capital
2. Deliver the highest quality entrepreneurial development
programs to drive the growth of global ventures from Puerto
Rico
3. Foster the development of a vibrant risk capital market that
supports entrepreneurs from seed to growth and beyond
4. Collaborate in building a powerful and well connected
entrepreneurial ecosystem
5. Support entrepreneurs by facilitating access to resources,
programs, people, and networks beyond Puerto Rico
What We Do: Financial Impact
Developing a Private Equity Market in Puerto Rico
 Since 1996, through a strategic partnership with Abbott Capital
Management, GGI provides local investors with access to a
highly diversified portfolio of private equity partnerships through
the Guayacán Family of Funds (GFF).
 GGI is the only organization in Puerto Rico that specializes in
private equity fund of fund investments.
 GGI has enabled investments in 8 local PE funds; including
$2.8M in direct investment.
SEMILLERO’S IMPACT POTENTIAL
Grow 10 companies
from $5M to $25M in
sales
9,692
JOBS
CREATED
JOB
CREATION
$200M in new
sales generated
ECONOMIC
IMPACT
$242M
ECONOMIC
IMPACT
What We Do: Social Impact
Investing in Entrepreneurial Development in Puerto Rico
 Management fees from GFF are fully reinvested into
entrepreneurial development efforts in Puerto Rico with two
main objectives:
• Accelerating the growth of global ventures from Puerto Rico
• Increasing awareness of innovation, entrepreneurship, and a
global mindset in Puerto Rico
 Our programs support ventures at different stages of
development:
• Idea
• Start-Up
• Growth
Our Programs
IDEA Seed Fund
1.
2.
A new fund providing seed capital to early-stage innovation driven
enterprises in Puerto Rico
The fund will invest in a first cohort of up to 10 companies through a
phased, milestone-based, investment program:
• Phase 1: $25,000
• Follow-on investment rounds: Up to $200,000 for top performing ventures
PR’S FIRST FOOD AND AG PRIVATE EQUITY FUND
Linking capital, market
intelligence and know-how
to grow sustainable food
and agriculture businesses.
FOR INVESTORS
FOR ENTREPRENEURS
WHY PRIVATE EQUITY IS A GREAT OPTION
DISCIPLINED BUSINESS
METHODOLOGY
& CORPORATE GOVERNANCE
LONG-TERM
COMMITTED
CAPITAL
ACTIVE
EXPERIENCED
PARTNERS
IDENTIFY GROWTH POTENTIAL
AND CREATE THE CONDITIONS
FOR GROWTH
Long-Term Vision
 Greater number of high quality investable ventures
 Entrepreneurs who understand implications of equity
investments
 Institutional and individual investors who are well-educated on
the asset class
 Variety of local risk capital alternatives for entrepreneurs at
different stages of growth
 Pipeline of emerging fund managers
 Funds that are a source of more than capital for entrepreneurs:
guidance, mentorship, networking, management talent, etc.
THANK YOU!
[email protected]
[email protected]