QD INVEST
The firm was established in 2010 by a core group of managing and investing partners who bring together a wealth of experience in growing successful businesses.
About Us
QD Invest is anindependent investment and financial advisor firm formed in 2010 to make longterm investments in lower-middle market businesses in Latin American, Mexico and the Caribbean.
The firm was founded by a core group of managing and investing partners – all current or retired executives – with a shared approach to participating in and growing successful businesses. Today the firm invests on behalf of QD Investors Roundtable XXI, a committed fund whose investors include that original group and new members with similar business leadership backgrounds.
Collectively the Roundtable offers a wealth of experience across a diverse array of industries, contributing judgment in addition to capital to the firm’s activities. The Roundtable differs in this and other respects from a traditional capital angel or private equity fund, endeavoring to be a partner of choice for management teams and owners of small and lower-middle market businesses.
In a nutshell, we focus on long& short-term investments in excellent companies in Latam & Caribbean with EBITDA typically between $500k and $1MM. Usually we invest in partnership with management teams or existing owners. We make both control and minority investments, and we provide capital for growth, acquisitions and recapitalizations alike. Our investments are usually in the form of equity and equity-like instruments.
Approach
- We believe that successful investing in lower-middle market companies requires expertise and not just capital. We put our time to work in addition to our money, and we look to form lasting partnerships with management teams.
- While not a requirement, we prefer investments that have the potential to last a long time, more than 5 years, but we look other lines a short time inside entrepreurship business. Unlike a traditional private equity fund, our Roundtable fund has no termination date. We do not seek to “flip” our portfolio investments every 3 to 5 years. All other things being equal, we would rather invest in 13 companies for 10 years than 30 companies for 3 years. In this way we can be better partners for management teams and existing owners.
- We believe that investments in excellent companies at fair prices perform better over the long run than mediocre companies at cheap prices. We look for businesses with genuine competitive advantages, and we support management teams in taking these businesses to the next level and beyond.
Team
QD INVEST is currently investing capital on behalf of the QD Investors Roundtable XXI (the “Roundtable”), a committed fund whose investors are comprised of current and executives. The Roundtable’s investing partners – all individuals – bring together a formidable track record as managers and investors in businesses across a broad array of industries in manufacturing, wholesale, retail, finance and business services.
The Roundtable differs from a traditional private equity fund in certain key respects, endeavoring to be a partner of choice for management and owners of lower-middle market businesses.
| Experience: | Current and retired executives who contribute judgment in addition to capital. |
| Engagement: | Active participation is enshrined in the Roundtable’s governance and economics. |
| Short&Long-Term: | The fund has no liquidation date and can own investments indefinitely. |
| Alignment: | QD provide 20% of the capital. |
| Fees: | Firm compensation is tied to performance, not assets under management. |
| Taxation: | As individuals, the Roundtable can own single-tax entities like LLCs and S-corps. |
Investments
We focus on long-term investments in excellent companies in Latin American and the Caribbeanwith EBITDA typically between $500K and $1MM.
We are not limited by sector and instead look broadly across all industries, with an eye towards businesses that possess one or more sustainable competitive advantages. Where ever possible we invest in partnership with management teams or existing owners. While not a requirement, we prefer investments that have the potential to last a long time, more than 5 years.
Size Parameters
- Company Size. We focus on companies with EBITDA (earnings before interest, taxes, depreciation & amortization) between $150K and $400K either in the current year or based upon a reasonable forecast for the coming year. We will consider investments in smaller companies within our immediate region.
- Investment Amount. We look to invest between $500K and $1,5MM per company. Larger amounts are possible through co-investment with our Roundtable partners or other firms.
Quality
- Competitive advantages that are sustainable over the long-term.
- Scalability.
- Excellent management teams.
- Superior returns on internally-invested capital.
Industry
- Recurring revenue service businesses.
- Biotechnology business.
- Differentiated Agroindustrial Businesses.
Geographic Focus
We consider investments whose primary operations are located anywhere In Latam. Given our central location, we are particularly active between México, USA the Caribbean and South America.
- 34% CELA
- 42% MÉXICO & UNITED STATES
- 24% SULA
Structures
Acquisitions.
- We acquire controlling interests in companies, often in partnership with existing or new management teams. We work with sellers and their advisors to structure transactions optimally for mutual advantage. We participate in auctions and negotiated processes alike.
Minority Investments.
- We also make minority investments, whether in recapitalizations to provide liquidity to existing owners or in the form of new growth capital. Since we are not passive investors, we do not take minority positions unless they are meaningful enough for us to be able to make a positive difference
Co-Investments.
- We will join as co-investors behind others who share our basic values. Similarly we welcome co-investors who add value to transactions led by us.
Portfolio
| INVEST | PROJECT PARTNER |
| ANDROMEDA RESOURC III | QD CELA |
| MANELLE C. Inc. | QD CELA |
| MCR. ELECTRIC Inc. | QD M&USA |
| IXT As. | QD SULA |
| PRALEA Inc. | QD M&USA |
| RENTE Inc. | QD SULA |
| DBIO Inc. | QD M&USA |
Partnerships
Manangers & Owners
We apply a partnership approach to everything we do, from our Roundtable investment structure to our interactions with management teams. Our style will not fit everyone, but the principals by which we aim to operate (and which we look for in others) are centered upon:
| Reliability: | Say what we mean and do what we promise. |
| Transparency: | Foster an open exchange of information and apply best practices in reporting. |
| Alignment: | Seek economic alignment among stakeholders where ever possible. |
| Fairness: | Treat everyone using the same standards. |
| Accountability: | Take ownership of problems and encourage others to do the same. |
Our Services
Mergers & Acquisitions
- Buy-and sell-side mandates.
Capital Raising
- Equity and Debt.
- Operational and organic expansions.
- New projects.
Strategic Advisory
- Sustainable growth and increased profitability.
- Competitive expansion throughout the region.
- Public sector strategy.
They Trust Us
CRS
Social Entreprenurship Program:
- We solve complex social challenges using collective transformation processes that include multiple actors, specifically entrepreneurs in Latam. Since 2010 year, we have accompanied the strengthening of more than 10,000 companies and the creation of 21,000 new companies of entrepreneurs in Latin America.
Shared Value:
- Design and structure sustainable business strategies for private& public firms, by incorporating initiatives in their value chain and interest groups.
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