Nexos invests principally through privately negotiated transactions. Typically, Nexos targets equity investments of $10 to $30 million in companies that have a successful operating history and above average prospects for future growth.

Nexos employs two general strategies for investment: Cornerstone (“roll-ups”) and Growth Capital.

In the Cornerstone Strategy, Nexos initially seeks to identify a “cornerstone” company with outstanding management and business prospects that can serve as a platform for industry consolidation in the region. Nexos conducts intensive research with the platform company management in advance of the initial investment to identify a series of potential acquisitions that would be attractive and benefit from superior management and access to capital. In conjunction with this strategic plan, Nexos works with management to establish bank borrowing facilities which can facilitate acquisitions as well as meet working capital and capital expenditure requirements.

Under the Growth Capital Strategy, Nexos seeks to acquire smaller companies that have superior potential for organic growth. These may include certain companies that are not fully capitalizing on their opportunities to serve their respective Hispanic markets or Hispanic-owned companies in the so-called procurement sector. Scale is extremely important for eligibility in contract bidding situations, and for many Hispanic businesses the lack of growth capital has limited their expansion in this area. In certain situations, non-Hispanic owned companies may be targeted if the potential exists to appoint Hispanic managers to enhance the existing management team. Nexos’ control position in these companies, coupled with the potential addition of senior Hispanic management, could better position the company for significant incremental business allocated for eligible minority firms.

In many cases, rapid scaling of a portfolio company’s business will involve a combination of Cornerstone and Growth Capital strategies. Nexos strategy relies on conservative capital structures and modest leverage that would not constrain a company’s growth.

Nexos will draw on both its extensive network and that of its Strategic Advisory Board, as needed, to find management personnel who can enhance the performance of its portfolio companies.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .