Guayacán Fund of Funds

 

Introduction

As part of its vision to lead in building an entrepreneurial ecosystem that develops global entrepreneurs and global ventures to be an engine of economic and social value creation in Puerto Rico, Grupo Guayacán, Inc. developed in 1996 a diversified private equity fund of funds investment program to enable local institutional investors to invest in geographically constrained, Puerto Rico focused private equity funds. Grupo Guayacán, Inc. to date has $199.3 million in assets under management through three diversified investment vehicles: Guayacán Fund of Funds, L.P. Guayacán Fund of Funds II, L.P. and Guayacán Fund for Funds III, L.P.

These funds invest in U.S. and international based private equity partnerships and have provided Guayacan’s local institutional investor base access to many of the largest and most important investment managers within the private equity asset class worldwide.

Since all of Grupo Guayacán’s support functions are locally based in Puerto Rico, it is well positioned to provide investors from Puerto Rico with efficient and personalized customer service. Grupo Guayacán’s excellent track record with its past funds has resulted in the development of its expertise in local Private Equity Fund management.

Grupo Guayacán, Inc. reinvests its retained earnings in initiatives that build an entrepreneurial ecosystem that in turn develops Global Entrepreneurs and Global Ventures to be an engine of economic and social value creation in Puerto Rico.

Why Private Equity?

We believe that the market for private equity investments has considerable depth and opportunity. Many investors commit the vast proportion or all of their equity investments to securities issued by the top 500 to 3,000 public companies due to various factors, including the availability of public data concerning their operations, liquidity concerns and inclusion of such companies in the various public indices. Hoovers, a D&B company, estimates that there are more than 145,000 companies in the United States with annual revenues of $10 million or more, of which approximately 5,000 were publicly traded, resulting in more than 140,000 private companies that could be potential candidates for private equity investing. In addition, divisional spinouts and new company formation may expand the number of potential investee companies considerably. We believe that much of the attractiveness of the private equity market is based upon this broad range of potential investment opportunities and the potential to invest capital outside the relatively efficient, and potentially volatile, liquid capital markets.

About our Advisors

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Abbott, an investment adviser registered with the U.S. Securities and Exchange Commission, was founded in 1986 with an objective of providing long-term continuity and accountability to private equity portfolio management. As a leading independent investment adviser specializing in the creation and management of private equity investment programs, Abbott focuses exclusively on private equity by making investments for both funds of funds and separate account clients in professionally managed venture capital and growth equity, buyout and special situations funds. Abbott is based in New York City, and Abbott’s subsidiary, Abbott Capital Management (Europe), LLP, is based in London.

Abbott’s core strengths include its focus exclusively on private equity, the continuity and experience of its investment staff, and its commitment to a consistent application of investment disciplines, including a dedication to alignment of interests. Since Abbott’s founding, the firm has been 100% independently-owned and has focused solely on private equity investment and management. With over 25 years of experience in the industry, Abbott has been able to hone its skills over various economic and financial cycles, and bring organizational maturity and consistency to the making of investment decisions and private equity management through its institutional processes and sophisticated systems.

Abbott credits much of its historical success, demonstrated by its attractive, cycle-tested, long-term returns, to three key aspects of its investment business: its ability to access top performing funds and managers, its rigorous selection and due diligence process, and its commitment to diversification. Abbott believes its history and current position in the private equity market and the experience of its managing directors and professionals provide the specialized expertise and proprietary networks necessary to capitalize on the investment opportunities available in private equity.