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Type of Investments

The Aruba Growth Fund will focus on acquiring companies that can leverage the investment team’s expertise in driving operational improvements to create value. While the fund is sector agnostic, the investment team has built thorough knowledge and networks in a variety of industry sectors including: business and financial services, energy, food, telecom, tourism, banking, insurance, international trade, manufacturing, processing and health care.

The investment team believes the following sources of deal flow will create attractive investment opportunities for the fund:

Privately held and/or family-owned businesses
Privately held or family-owned businesses are the source of a significant portion of buyout deals in Aruba. Typically, the owners of these companies are seeking a successor, liquidity or a partner to assist with significant expansion, as the company becomes a regional or national market leader. Some of these businesses may be operating in a relatively immature industry that is ripe for consolidation and can have strong potential to expand locally, regionally or internationally. Others are characterized by a need to professionalize the management in order to facilitate ambitious expansion strategies to enhance value and improve exit prospects.

Corporate carve-outs
Sales of businesses by corporate parents could be a source for buyout deals in Aruba. Corporate parents often seek to divest healthy business units as a result of strategic refocusing, corporate restructuring, or in response to an increasing focus on shareholder value. The investment team believes that these businesses are often characterized by significant potential for investment as a stand alone company, and often require supplementing existing management teams, installing management accounting systems and provision of significant strategic guidance.

Foreign companies or developments
As Aruba is a stand-alone economy, introduction of new developments and technologies is not an organic process. A foreign or local company has to take the initiative to prepare, implement and promote such new economic activity (i.e. mobile telephone networks, internet, time-share, digital television). The managing directors, with their international background and reputation, will be in a good position to recognize innovation opportunities, find the right partners and implement. 

Proven-technology projects
Aruba will require additional development of infrastructure and energy production to facilitate and stimulate local economic development. Particularly in the EU, but also in the region, it is becoming common practice to develop and finance this type of project in a public private partnership. The investment team, with its experience in project finance and energy, believes there might be good opportunities to create interesting investment alternatives in cooperation with the government or with public entities.

Corporate restructuring
Generally, the managing directors do not believe distressed situations should be the target of private equity investors. However, in small island economies companies are sometimes getting in trouble for reasons that would not lead to a distressed situation elsewhere. It is sometimes harder to find sufficient financing, good management or the right strategic partner in a small economy. The network and long-term view of a private equity investor might overcome this handicap and turn a local restructuring situation into an attractive investment opportunity.

Investment Criteria >>