Private Equity

  1. Private Equity

Overview – Private Equity

Epicurus participates in the valuation and capital-raising for venture capital and private equity deals. Our advisory hasn´t been only to the financial industry but also has reached agricultural, logistic and government providers.

Our complete advisory includes:

  1. Deep Industry knowledge revised by experts invited on a case by case project.
  2. Valuation models.
    • Stress of economic and financial variables.
  3. Design of strategies to leveraged buyouts.
  4. Private capital-raising options.

Our approach is customized to the needs of our clients and combines the advice of industry experts with quantitative analytics.

We take the time to listen and learn about your business and combine this informed perspective with our market expertise to work with you for your business.

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Private equity strategy

Private equity is a potential source of enhanced returns for long investors seeking to access the illiquidity premium. Our ability to adapt quickly to changing market environments, capitalize on market dislocations and to share international best practices on processes attracts high net-worth investors.

  • Opportunistic Buyouts
  • Leverage Buyouts
  • Corporate Partner Buyouts

The excess rate of return that an investor may achieve above that of more liquid securities is known as the illiquidity premium. Investors generally expect a higher return as compensation for holding assets that are less liquid and therefore may be more difficult to convert into cash.

Investors typically gain access to private equity through fund structures or separate accounts, and less frequently through investments directly into operating companies.

Regular process

Buy: due diligence and careful investment selection are crucial for success in private equity investing. We take legal issues seriously and have a JV with one of the most prestigious.

Change: execute strategies made in conjunction with industry specialists.

Sell: private equity investments in aggregate have historically demonstrated excess returns greater than 500 basis points over 10-20 year periods.

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Latest project

Mexico Special Opportunity Fund

Single strategy opportunistic investment vehicle that acquires directly the accounts payables from the Federal Government of Mexico from its key service providers.

Align all interest between investors and partners by structuring a tier-based performance/success fee.

Detailed due diligence and a financial analysis will be done for each account payable to establish the maximum price that Fund or Trust is willing to pay.

FX exposure of the principal could be hedged through derivatives depending of the preferences of the investors regarding currency risk.

Unfunded commitment letter of 2 years for each investor at the time the Fund is launched. The will be capital requirements when money is needed to buy account receivables already approved by the Investment Committee.
An initial deposit of 10% of the committed capital will be asked in advance to open the accounts and pay the day-to-day operation of the investment vehicle selected for the Fund.
During the first 2 years, after collecting any account receivable, the capital invested will be subject to reinvestments to continue to generate high returns to the investors

Considerations

Investors should have a clear understanding of the dynamics of the industry and the unique attributes of private equity when investing in this segment of equities.

Purchases, or capital calls, are unpredictable and need to be effectively managed in the context of the aggregate portfolio.

An allocation to private equity should be based on an investor’s ability to identify and gain access to select managers, the investment horizon, and the portfolio’s liquidity needs.

We have consistently delivered competitive investment performance to clients while providing access to attractive investment opportunities in private markets. However, past performance does not guarantee future results.

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