Services 

We structure capital raise transactions with:

- Private Equity Funds:  International funds created with equity from qualified investors such as institutional investors. Resources from the fund are invested in private companies with high growth potentials which represent superior returns than those found in the market.  

- Financial Institutions: National and international Banks that finance companies mainly through debt.  

- Institutional Investors: Pension Fund Managers, Insurance Companies, Trust Companies, and Brokerage Firms that invest in fixed and variable income assets. In particular, we work with institutional investors that invest in emerging market companies that are going through a process of public listing with simultaneous capital raise in the US stock market.  

- Strategic Player: Private companies that aim to consolidate in the market through the acquisition of companies that operate in their same sector.

 

For companies that require between US$ 5 million and $US 100 million to:

- Expand current operations: Finance working capital, the acquisition of fixed assets, the development of new markets and/or product lines, strategic acquisitions. 

- Optimize current capital structure: Liabilities restructuring, partial share repurchase, LBO, MBO and capital raise.

- Sell to a strategic player: Sell the company’s operation to a strategic player.   

 

 

Process Stages

1. Financial Consultancy and Due Diligence:

To offer financing/investment alternatives to companies and investors respectively, SPOT Investments identifies opportunities from a wide project portfolio, and carries out an extensive due diligence process considering the market and the industry in which the company operates; it´s strategic position; business plan; production processes and marketing; research and development; management team; financial strength; shareholder structure and the use of the proceeds raised. Based on the due diligence, our working team suggests a financing scheme through: bank loans; capitalization or mezzanine debt with Private Equity Funds; capital raise or sale of the company to a strategic player or public listing in the US stock market.          

During this stage, SPOT Investments elaborates the Information Memorandum and the presentation for potential equity or debt providers; the financial model with valuation analysis and different growth and financing payment scenarios.

 

2. Equity Consecution:

Once all the company’s information is received and examined, and the financing structure is defined, SPOT Investments presents the business opportunity to investors whose investment profile fits the company’s characteristics and needs.

This stage includes SPOT's companionship and consultancy in the negotiation of the terms of reference; in the consecution of external legal and accountant due diligence processes requested by the investors involved in the transaction; in the documentation of contracts and the final transaction closure.  

 

Financing Process Characteristics

  • Fund’s investment may be structured through: repurchase of existing common stock, purchase of new issued common or preferential stock, mezzanine debt with rates and conditions in-between pure debt and pure equity.
  • The Fund contributes not only with economic resources but also with experience, which is important in order to propel the company’s growth.
  • Often, Private Equity Funds purchase more than 51% of the company´s shares, becoming the principal shareholder and gaining operational control over the company.  Other times, investments are lower so they don't generate a relevant change in the company’s management.
  • It involves the company’s achievement of the established goals and objectives.
  • Usually, private investments have a medium term duration, thus after 2 to 5 years shareholders may be interested in redeeming their investment by selling the company to a strategic player, listing the company in a stock exchange, selling their shares to initial shareholders, etc.  
  • As exit strategy and return on investment for Private Equity Funds and other shareholders, SPOT Investments develops a process of public listing with simultaneous capital raise transactions that involve a private offer of the company’s shares, also known as PIPE transactions (Private Investment in Public Entity). In the public listing process, the company purchases the control of a public non operative entity (shell) and merges into it becoming a publicly traded company in its own right. The company´s shares are initially listed in the Over the Counter (OTC) American market and within 2 years following the initial listing, the titles may be upgraded to the NASDAQ.