Active control investment driving operational improvements
Alba applies a disciplined investment strategy of committing capital in middle-market companies primarily located in Argentina.
The typical investment size is in the $10 million to $50 million range. Alba capitalizes and acquires businesses that will benefit from operational efficiencies, equipment modernization, consolidation opportunities and increased business outsourcing. By acquiring control and co-control positions, Alba is able to lead operational and governance improvements, time its exits, and maximize value. The Firm’s objective is to deliver strong returns through a mix of growth and value investment.
Particular elements of Alba’s investment strategy:
Focus on Control and Co-Control Investments
Alba invests in companies in which it has control or co-control.
Focus on Improvement of Management Practices
Alba pursues operational and governance improvements which increase the target company. The investment professionals and company managers work jointly together to maximize results.
Strong Corporate Governance
Alba implements “best practices” in corporate governance in order to create additional value in its investments and facilitate the exit.
Early Focus on Exit
Alba seeks an early understanding of how it may exit each investment. The proper timing and exit methods are crucial elements to achieve the target returns. Alba only considers M&A exit scenarios as part of its exit thesis. As a result, the Team follows a conservative evaluation approach and pursues investments which are expected to be of interest to strategic investors.
Conservative Capital Structures for Portfolio Companies
Alba strives to maintain a conservative capital structure in its portfolio companies. The Team performs analyses prior to and throughout the life of an investment to determine the appropriate capital structure that balances value creation with risk to the equity.