Approach - Bahlam Capital

Antigua Guatemala - credit Jeison Higuita

Private capital, applied strategically, is vital to Central America’s development

The Opportunity

A Vastly Underserved Market

We view private capital as a better option to allocate development funds in the region. Growth capital in particular, offers an attractive risk-reward profile and is vastly underserved in Central America.

Our Approach

Building on Existing Scale

Scale is defensive and enables greater impact – medium enterprises can become engines of growth.

Facilitates exits: larger companies are more attractive to regional and foreign corporate buyers.

Companies with scale have shown they have a reason to exist and can weather difficult environments.

Pushing Boundaries

Countries grow by investing in incrementally more complex sectors that can support better jobs.

We invest in companies that are pushing their commercial boundaries: moving up the value-creation chain or launching new products / entering new markets.

Momentum: Bahlam has completed four investments to date and we continue to review highly promising opportunities.

Upskilling the Workforce

We create higher paying jobs by growing the companies we invest in and by training their workforce.

We measure our impact with (i) the number of jobs that we create and (ii) avg. monthly pay per employee.

Approach leads to higher retention rates and higher customer satisfaction.

Situations We Look For

Domestic Leader, First-time Exporter

Wants or Needs:
– Distribution network
– Growth capital
– Operational prowess

Opportunities to unlock value:
– Distribution partnership
– Product portfolio optimization
– Operational excellence

Family Business Transformation

Wants or Needs:
– A succession plan
– Shareholder liquidity
– Often under-managed
– Often risk-averse

Opportunities to unlock value:
– Deepen and incentivize management team
– Operational excellence
– Capital structure optimization
– Product portfolio optimization

Entrepreneur Seeking Scale

Wants or Needs:
– Growth capital & growth road map
– Support team / partner
– Network access

Opportunities to unlock value:
– New product development / go-to market strategies
– Build-out systems to support “good growth”
– Professionalize and streamline organization
– Inorganic growth / M&A

Orphaned Business Unit / Carveout

Wants or Needs:
+ Focused strategy / a game plan
+ Stand-alone working capital

Opportunities to unlock value:
+ Revamped growth strategy
+ Customer segmentation / product portfolio optimization

Sectors We Serve

Manufacturing

Man holding steel frame while welding — Packaging
Advanced materials
Niche automotive
Value-added forestry goods
Home appliances
Niche electrical
Medical furniture & supplies
Tags & labels
Paints & pigments
Contract manufacturing

Agro-Processing

Picture of corn stalks growing. — Agritech
Irrigation equipment
Specialty snacks & drinks
Ready-to-eat meals
Sports nutrition
Export niche commodities
Vitamins & supplements
Animal feed
Specialty chemicals
Ag & dairy processing

Niche Services

pexels-cottonbro-7019375 — Logistics & warehousing
Value-added distribution
Utility support services
Niche construction
Specialty recycling
Equipment suppliers
Facility management
E-commerce support
Digital payments
Business process outsourcing

Consumer

marketplace — Specialty grocery
Natural ped food
Consumer health
Specialty retail
Auto services
Consumer pharma
Household products
Education
Eco-tourism
Natural personal care