Venezuela, post-2019 informal dollarization, represents a significant, undervalued growth opportunity for patient capital willing to accept illiquidity risk.
A roll-up strategy in the Latin American generics pharmaceutical sector is highly effective due to low acquisition multiples (3.5-8x EBITDA), high cash flow, and potential for significant valuation arbitrage on exit (10-14x EBITDA).
The primary risk in markets like Venezuela is illiquidity, which must be compensated for with high target yields of around 20% and a long-term investment horizon.
The Latin American pharmaceutical business functions more like a consumer products industry focused on generics rather than an R&D-driven one, making it cash-generative and suitable for consolidation.
Geopolitical shifts toward a multipolar world will increase the strategic importance of Latin America to the United States, potentially influencing future policy and investment flows.
Pre-2019
Describes Venezuela's economy as being in a state of severe decline, highlighted by an approximately 80% drop in oil production from its peak levels.
Circa 2019
Identifies the beginning of an informal dollarization process in Venezuela, which Bitar claims created stability and marked the start of a new growth phase for the economy.
Last four years
Claims his Venezuelan investment portfolio has grown at approximately 40% per annum during this period, with employee compensation at his portfolio companies increasing fivefold.
Last three years
An acquired Venezuelan pharmaceutical company, Calux, executed a roll-up strategy, growing from the sixth-largest to the second-largest manufacturer in the market.
Recent
Notes a recent shift in U.S. policy that restricts the sale of Venezuelan oil to the U.S., which he claims is effectively redirecting those sales to China.
▶Venezuelan Contrarian InvestmentApr 2026
Bitar posits that Venezuela's post-2019 informal dollarization created a stable foundation for a new growth phase. He identifies deep value in private companies, with valuations below four times EBITDA, enabling high returns (a claimed 40% per annum for his portfolio) that compensate for inherent illiquidity risk.
This strategy hinges on the belief that macroeconomic stabilization, even if informal, can unlock significant operational and valuation growth in distressed markets long before political risk fully subsides.
▶Pharmaceutical Roll-Up StrategyApr 2026
Bitar details a strategy of acquiring smaller pharmaceutical companies in Latin America and consolidating them into a larger entity. He highlights acquiring assets at 3.5-8x EBITDA and scaling them to achieve exit valuations of 10-14x EBITDA, as demonstrated by the growth of his portfolio company Calux.
The Latin American generics market, operating more like a consumer products business with high cash flow, is particularly suited for private equity-style roll-ups that create value through multiple arbitrage and operational scale rather than R&D innovation.
▶Macroeconomic Tailwinds in Latin AmericaApr 2026
Bitar identifies several positive macroeconomic factors for the region, including the significant role of U.S. remittances in Central American economies and Venezuela's recovering oil production. He also notes that asset valuations across the region are generally attractive compared to those in the United States.
Bitar's investment thesis is not solely company-specific but is bolstered by a belief in broader, positive regional trends that provide a supportive environment for growth.
▶Geopolitical Re-AlignmentApr 2026
Bitar observes a shifting geopolitical landscape, noting that recent U.S. policy has inadvertently pushed Venezuelan oil sales towards China. He predicts that in a developing multipolar world, the historical ties between the U.S. and Latin America will become more strategically important.
Investors in the region must monitor U.S. foreign policy closely, as shifts can have immediate, tangible impacts on trade flows, market access, and the strategic calculus for regional players.