Strategy

Advent Morro’s preference is to team up with management teams and companies that are seeking capital to accelerate growth organically and/or through acquisitions. The firm also looks to actively support experienced management teams in de-novo companies entering established industries via market consolidation opportunities and internal growth. Later stage leveraged buyouts are of specific interest when investment returns can be enhanced beyond leverage reduction to include moderate growth in markets and industries where Advent-Morro’s networking, local market know-how and experience can bring value beyond its capital.

The firm focuses on investing in or buying companies in growing industries with $5M-$20M in revenues and operating cash flows ranging from $1M-$5M. Its preferred equity investment size ranges from $5M to $10M. The firm will selectively look at co-investment opportunities where it is not the lead investor, enabling it to source and look at substantially larger investment opportunities. Given Advent-Morro’s extensive co-investment experience and established contacts, it often participates in substantially larger transactions taking a minority position as the local institutional partner providing significant due diligence and post-investment value for both investment monitoring and business development.

Advent-Morro focuses on companies that are operating in Puerto Rico, Puerto Rican companies expanding into the U.S. and Latin America, and established mainland-based companies whose products or services are targeted at the U.S. Hispanic market, specifically in those markets with a high concentration of people of Puerto Rican descent.

Our Value-Added Partnership

Advent-Morro dedicates as great an effort to supporting its portfolio companies as it does in selecting them. The firm’s philosophy is one of adding value to the companies it invests in. With its extensive contacts in the industry, Advent-Morro is in a position to provide not only the capital but also the experience and resources necessary to achieve management growth and expansion targets.

Advent-Morro’s intent is to be an equity partner for a period of three to seven years. Exit strategies will typically focus where Advent-Morro has extensive experience, primarily through financial or strategic buyers.  Since investment returns will be realized from the sale of its equity position, a large part of the value added will be targeted at maximizing company equity value and exit valuations.