AI Issue 4 2018 - John Harrison & Company

46 Acquisition International - Issue 4 2018 Altra Investments is a pioneer private equity firm in the Andean region, which looks to generate attractive returns to its investors by creating value in midcap companies, through improved operations and strategic management. We profile the firm as we look to gain an insight into the ongoing success of the forward-thinking company. stablished in 2005, Altra was found on the Principals’ shared experience and mutual belief that midcap companies in the region represent highly attractive investment targets for private equity firms with the ability to create value through improved operations and strategic management. The firm’s investment focus is the Andean Region with special emphasis in Colombia and Peru, where it has positioned local investment teams with over 80 years of direct relevant experience in the region. Since its inception, Altra has invested in seventeen platform companies and has raised over $500 million of equity commitments from a diversified group of investors, including leading public and private pension funds, funds-of-funds, family offices, sovereign wealth funds, endowments and foundations. With operational presence in Colombia and Perú, Altra’s focus is on the third and fifth largest economies in the region. Over the past decade, both countries have exhibited robust and stable economic growth, driven by attractive demographics, improved security, a large natural resource endowment, rising domestic and foreign investment, and regional and international economic integration. Strong underlying macroeconomic fundamentals have been accompanied by wide- ranging economic reforms, which have driven significant improvements in the business and investment environments of both countries. Company: Altra Investments Contact: Jaime Barriga Address: Calle 116 No. 7-15 Interior 2 Oficina 403, Bogota, Colombia, USA Phone: 001571 2758340 Website: www.altrainv.com APioneer Private EquityFirmin the AndeanRegion E IF180020 Within this backdrop, Altra believes that there are two trends which are converging to make the current environment exceptionally compelling for private equity investors focused on the midcap segment in the region. First, rising income per capita, coupled with improved security and increasing domestic and foreign investment, has unleashed tremendous demand for a wide variety of products and services, which is facilitating the growth of numerous new and underpenetrated sectors. Second, regional and international economic integration has led to a substantial increase in demand for higher value- added products and services across the supply chains supporting many of the region’s largest and fastest growing industries, such as oil and gas, mining, infrastructure, construction, consumer goods and services, and tourism, among others. This significant growth in demand has been accompanied by a corresponding increase in customer expectations in terms of pricing and quality, which is accelerating a trend of consolidation, formalisation, and professionalisation across many industries. When taken together, these developments have broadened the number of industries that are capable of supporting large-scale enterprises, unleashed the growth of previously underpenetrated markets, and led to the development of new and emerging sectors, creating an environment in which well-managed companies, along with the help of experienced, value-adding investors, can achieve leading market positions in rapidly growing industries. Interestingly, while Altra considers the current environment in Colombia and Perú to be particularly compelling, the Principals believe that attractive investment returns can be generated in each country irrespective of the prevailing macroeconomic or political conditions. This opportunity stems from the fact that a significant majority of midcap companies in the region are informally managed and/or significantly undercapitalised and therefore have substantial potential for improved performance and growth. Within the midcap segment, Altra believes that there are hundreds of companies that possess high quality underlying assets and unique Crucial to its success, Altra’s disciplined, value-oriented investment strategy takes into consideration and seeks to capitalise on the challenges associated with acquiring, managing, and exiting private equity investments in the region.