Mexico Single Family Office
💸 Mexico-based Single Family Office invests with with multi-decade horizon in growing companies with durable moats; evaluates "optimism quotient"
The insights below come from a conversation with the investment team of a High-Net-Worth (HNW) SFO based in Mexico, who made their wealth in commodities and sold their operating business ~20 years ago. The 2nd generation (G2) is currently managing the family office (team of 20+ people) for G4 & G5.
🧠 Investment Philosophy
Only invest in businesses they are willing to hold for decades. Key questions:
Is the business led by people we respect and admire?
Will the company continue to exist in 10, 20 or 30+ years?
Will we invest if we knew we could never exit?
📊 Portfolio Construction
Private equity
Venture capital
Real estate
Public equities
(allocations redacted for privacy)
🚀 Private Equity Portfolio
Concentrated portfolio focused on basic needs, e.g., healthcare, education, financial services, etc.
Direct investments with minority stakes, but significant involvement
Select strategic allocations to external GPs (incl. permanent capital HoldCos)
🔮 Looking Forward
Cautious about private markets given competitive environment and sufficient dry powder
Continue selectively investing in high quality companies and people
Work closely with current portfolio companies to build value
✍🏼 Lessons Learned
Think like a business-owner, not a deal-maker
Learn continuously and think independently
Know your competencies
Evaluate optimism quotient: “How much optimism is factored into the price?” - Howard Marks, Mastering the Market Cycle
🙏 Special thanks to the investment director at this SFO for sharing their insights (shared with their permission, on the condition of anonymity).
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