Keep pulling the thread on Rodrigo Bitar.
Over the last four years, Venezuela's oil production has recovered to approximately one million barrels per day.
The portfolio company Calux acquired the Venezuelan assets of Pfizer and Vivax Pharmaceuticals.
An informal dollarization of the Venezuelan economy, which began around 2019, created stability and marked the beginning of a new growth phase.
A recent shift in U.S. policy has restricted the sale of Venezuelan oil to the U.S., effectively pushing those oil sales to China.
In Central America, individual pharmaceutical assets can be acquired for 7-8 times EBITDA, while scaled-up regional players are valued at 10-14 times EBITDA in exit transactions.
Venezuela's oil production dropped by approximately 80% from its peak levels before beginning a recovery.
Rodrigo Bitar's investment portfolio in Venezuela has grown at approximately 40% per annum over the last four years.
Through a roll-up strategy, an acquired Venezuelan pharmaceutical company grew from the sixth-largest to the second-largest manufacturer in the market in less than three years.
The pharmaceutical business in Latin America is primarily focused on branded and unbranded generics, operating more like a consumer products business than an R&D-driven one.
Pharmaceutical companies in Latin America focused on generics operate with 30-35% margins and low capital expenditure, generating high cash flow.
Current valuations for private companies in Venezuela are below four times EBITDA.
The pharmaceutical company Calux was acquired in Venezuela at a valuation of approximately 3.5 times EBITDA.