The primary risk is asset illiquidity, requiring a long-term and patient investment horizon with no clear short-term exit path.
Unpredictable shifts in U.S. policy towards Venezuela, particularly regarding oil sanctions, could impact the macroeconomic environment.
Difficulty in convincing family-owned businesses to sell at deeply discounted valuations, requiring significant relationship-building and value-add propositions.
Opportunities Identified
Acquiring high-quality, strategic assets in Venezuela at deeply discounted valuations, specifically sub-4x EBITDA.
Executing a roll-up strategy in fragmented, essential-goods industries like pharmaceuticals to create market leaders and achieve scale.
Leveraging the stabilizing effect of the informal dollarization of the Venezuelan economy, which underpins local consumption growth and business planning.
Capitalizing on the lack of available credit, where providing capital for working capital and acquisitions is a major competitive advantage.