Capital Allocators – Inside the Institutional Investment Industry Rodrigo Bitar – Empty Rooms: Investing in Venezuela (Capital Allocators, EP.268)
Aug 29, 2022
Rodrigo Bitar, Co-Founder and Managing Partner of 3B1 Partners, dives deep into Venezuela’s unique investment landscape. He sheds light on how geopolitical challenges, like sanctions, mask significant rewards for those willing to risk it. Rodrigo shares insights on the economic transition from hyperinflation to dollarization and the new opportunities emerging in oil due to global shifts. With a backdrop of personal stories and professional lessons, he emphasizes adaptability and the potential for high-quality investments amidst adversity.
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Sourcing Deals
- Leverage personal relationships and networks to access proprietary deals and connect with business owners.
- Build trust and rapport to entice private companies to explore potential partnerships.
Due Diligence Process
- Conduct thorough due diligence similar to U.S. practices, including legal, financial, and operational assessments.
- Include compliance checks related to sanctions to ensure legality and mitigate risks.
Pharmaceutical Investment Example
- 3B1 invested in a pharmaceutical company, a sector with significant growth potential due to suppressed demand.
- The company had strong management, good margins, and a dividend yield of 6-7%, aligning with 3B1's criteria.