What we do
E3’s private equity practice consists in the structuring of SPV’s to engage in opportunistic investments with a medium term horizon across multiple industries. We design tailor made financial solutions for the asset at hand, bring together the best and brightest of the specific industry segment, and assume a hands-on supervisory role as General Partners. Each project is financed through groups of individual investors according to their risk profile and bite-size potential.
Some of our assets include:
E3 Capital has assumed a GP role in the creation of a world class higher education institution: LEAD University. The project has implied the coordination between two groups of leading academics who have set the bases for an innovative educational model with strong commitment to quality education, the structuring of a viable investment and attraction of over $8M in seed capital, and the formation of a solid management team.
In addition, E3 leads a hands-on supervision in the following tasks on a weekly basis: execution of a marketing plan, budgeting and expense control, financing, quarterly reports to investors, leading board meetings, representation of the school within the local ecosystem, etc.
The university seeks to attract over 1,500 students over the following five years both locally and internationally, and will develop a strong placement on tailor made executive programs. Contrary to the typical PE Assets in E3’s portfolio, LEAD poses a longer term horizon and an exit strategy is yet to be defined.
E3 has an active role in the conception and development of an upscale Country Club on the outskirts of San José, Costa Rica. The project will develop an 8 hectare piece of land, into a 2500 member club, containing swimming pools, restaurants, private event spaces, fitness facilities, tennis courts, a spa, and several other recreational amenities for its future members.
The project is a joint venture with a leading project management firm, the country´s leading architecture firm, two construction companies, and several other investment partners. E3 has had a leading role thus far in the financial modeling, budget control, set up of a 10 person sales team, and obtaining the required financing.
The project has a 4-year horizon, and is expected to generate $60MM+ in revenue and return a 35% IRR on an approximately $8M equity investment
E3 Capital structured an SPV to acquire a majority stake in two specialty coffee-shop chains. The objective has been to execute a growth strategy to grow the current 10-shop chain into a 25-shop chain over the next 5 years, seeking to leverage the strong brand equity and deep history with the costa rican culture.
E3 has had an active role in the financial structuring of the transaction, obtaining the equity required, designing a successful growth strategy, and providing active financial supervision at a corporate and administrative level.
The investment was in the order of $3M in cash and shares, where E3 will seek an exit in a 4 to 5 year horizon, expecting an IRR of approximately 30% to investors.
E3 Capital has recently concluded the structuring of a $2.5M private financing round for Productos de Concreto, a leading construction company specialized in the design and fabrication of pre-fabricated concrete elements for a wide variety of private and public infrastructure projects with annual revenues of over $45M. The financing will be used to execute a regional growth strategy in partnership with construction companies across Central America.
The financing has been structured in the form of preferred shares, with a convertibility clause to common shares at the end of year 4. E3 will have two seat on the Board of Directors, and will provide active financial supervision in coordination with the CFO. The structuring promises an 11% dividend to investors, and favorable conversion terms if EBITDA targets are not met.
E3 Capital provided financial support through the structuring of an SPV for a $1M venture investment in a software firm, IMPESA S.A. The software allows the user to establish credit card parameters in a user-friendly platform, and integrates with ERP´s for simple expense reporting.
The successful deployment of the software was executed through a leading regional bank, which in 2015 provided an investment of a further $3MM and formed a deeper partnership with the startup. The company also received a prize in financial innovation by Financial Times in London at the beginning of 2015.
E3 Capital provided the financial structuring for both transactions, had an active role at a board level, and after selling its stake, achieved a successful exit with an realized IRR of over 80% to the original partners in the SPV.
Through the structuring of an SPV, E3 Capital led an $8.9M investment in a leading regional IT services provider. The investment’s purpose was to propel an ambitious growth strategy in the region. With current presence in all of Central America, the Dominican Republic, and Colombia, the company now seeks to consolidate its operations and grow its client base.
ITS currently focuses on five b2b solutions: business contact centers, managed service centers, IT integration projects, data center, and learning centers.
E3 Capital currently represents a 32% equity stake, and has two board seats. Through an active involvement at the board level, it has led the company’s restructuring of its balance sheet, and is seeking a three to four year exit strategy that is expected to return a 15% IRR.
Customs Agency Humberto Álvarez (Grupo H.A. Logística) is a company with 80+ years of experience in international freight logistics, and was in the search of $2M to provide short-term financing to its customers, in order to achieve a growth in turnover.
E3 created an investment vehicle (SPV) and raised the money through a private debt offer. The SPV signed a Credit Agreement with Grupo HA, in order to provide the company with a global line of credit (LoC) for the short term financing of the import duties (DUA´s) of selected customers.
Mergers and Acquisitions
We have broad experience advising corporate sales and acquisitions both locally and with international companies. E3 brings together sophisticated financial analysis and valuation techniques, with an extent professional network that facilitates contact with a wide array of potential buyers. Over the past four years, we have successfully advised over ten clients across multiple industries.
Some of our projects include: