LATINOS IN SEARCH OF CAPITAL & CAPITAL IN SEARCH OF LATINOS ALTA GROWTH CAPITAL
Johanna Hoyos
THE LATINO INVESTOR MARKETPLACE ALTA Growth Capital Founded in 2006, is a private equity firm comprised of multicultural and fully dedicated group of professionals who focus on buyouts and growth stage investments, capitalizing in established companies in Mexico, Latin America (LATAM) and U.S. with growth potential. The objective is to achieve high returns through capital gains by investing in a diversified portfolio and improve margin efficiencies. Scott McDonough and Javier G. Teruel from Alta Growth Capital, explain their mission, investment objectives, fund goals, and distinguishing characteristics, setting them apart from their competitors, when helping the future of Latino-owned businesses based in the U.S.
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cott McDonough is one of the founding cofounders of the private equity firm. His has over 20 years of experience focused in private equity, venture capital, entrepreneurship, Mexico and United States law. Javier G. Teruel, is the chairman at ALTA Growth Capital, with 44 years of experience in business management, private equity investing and impact investing in various countries throughout the world. He made significant contributions during his tenure at Colgate Palmolive’s worldwide strategy, restructuring and business program, and business development group in Mexico, the Dominican Republic, the Caribbean, Central America, and New York. Currently, both Scott and Javier serve actively on Boards of several different organizations utilizing their extensive experience in Mexico and Latin America in private equity investments and extensive transactional experience in the United Sates, including venture capital investing. The purpose of ALTA Growth is to share the collective knowledge, strategies and solutions in order to help Latino-owned businesses take informed action to help accelerate the pace at which they grow and scale. According to the State of Latino Entrepreneurship, “Latinos are starting business at a faster rate than the national average across several industries, growing 34% over the last 10 years compared to just 1% for all other small businesses.”
Scott McDonough
This statistic supports that Latino-owned businesses in the United States are growing yet the scaling of these businesses is not scaling effectively in the near future. They are growing in quantity, not in quality because they do not have additional revenue and financing to get to the next level of growth. This is where a private equity firm like ALTA Growth Capital comes in, to change that by helping Latino businesses with higher level of performance, higher growth, better futures for their businesses and family. The Added Value Equation ALTA Growth Capital aims for significant added value from their investors to their companies who they invest in, all aligned with the interest of helping underserved Latino-owned U.S. businesses. A relationship with an investor(s), the company and ALTA Growth Capital must be a relationship of real added value. The private equity firm not only gives the company access to capital but also can help them grow their business by helping develop a strategy for growth and bring them best practices to expand their business. For instance, sharing best practices in sales, such as how to approach their customers, how to disseminate information to stakeholders, how to best present themselves to customers and investors. ALTA Growth focuses on opportunities in sectors that are benefiting from growing middle class Latinos in the U.S. such as, retail, healthcare, financial services, education, industrial and manufacturing. Their first funds started in Mexico because of its tremendous platform for manufacturing. Part of the attractiveness of Mexico is the macro situation, with a large, stable economy and large population, strong trade relationships with the primary being with the U.S. Scott believes it’s one of the largest trade relationships in the world, and in the macro standJANUARY /FEBRUARY 2022 LATINO LEADERS 41
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