Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Overview
3
For Starters
3
Emerging Markets, Emerging Technologies
3
Lastarria’s Solution 4
Where We Operate 6
Team
10
Targeted Assets
16
Energy
16
Agriculture
18
Trends
18
Lastarria AgriSecurity 19
Real Estate 20
Technology 20
The Dealbook
21
Compensation
21
Service Providers
22
Overview
For Starters
We think finance is too pretentious, and we aim to change at least our little corner
of it. Wealth creation and successful business operations are predicated on the basic
principals of hard work, thrift, efficiency, constant innovation, and a generous dose
of entrepreneurial true grit. Our humble approach to investing may not win us
much recognition in many high finance trade journals, but we hope it earns us a
good reputation with our financial partners.
The reputation of the old private equity model has been irreparably damaged by
the financial crisis, which exposed the grave misalignment of interests inherent in
the 2 & 20 system, the lack of transparency in private equity fund structures, and
the absurdity of bankers trying to manage portfolios of diverse operating
companies.
We don’t ask our investors to invest in a fund structure that we then control. We
started to do this, thinking we could make improvements within the traditional
model, but the more we talked to potential investors, the more we realized the
acute need for a radically different approach. As a result, we bring our prospective
investments to investors on a deal-by-deal basis, exposing each deal to the granular
scrutiny and due diligence of many investors rather than three people who
arbitrarily comprise an internal investment committee.
Call it “crowdsourcing” for investing. We think this approach will help us come up
with a more comprehensive list of possible trouble spots before we place a single
dollar of capital, aiding us in the ongoing management of the assets we purchase.
We operate from our markets, not from an office in New York or London. We
believe that the kind of deep relationships necessary to succeed in emerging
markets can only be forged by living and working every day with the people who
are key to our portfolio’s success, not by jet-setting to quarterly board meetings.
Many people in finance behave as though there is no way to make money without
treating other people with contempt and condescension. We think that mistaken
belief is just a thinly veiled excuse for egotism and self-aggrandizement. We strive
to treat everybody we interact with as equals, from senior executives to miners and
farmers, recognizing that every person is intrinsically of value, regardless of their
station in life, and that our common life depends upon each other’s toil.
Arrogant, selfish people have no place in our organization, as principals, operating
partners, service providers, or investors.
Where We Operate
For now we are 100% focused on Latin America & the Caribbean, with some
activity is strategic technologies coming out of the United States that we believe
support our long-term engagement in our principal operating markets.
Chile
Chile is our primary operating market and where most of our principals are based.
We believe that Chile is the best gateway for investing in Latin America and is the
benchmark against which the rest of the region’s development ought to be
measured. Here are some facts that support our Chile thesis:
Panama, Costa Rica, and Uruguay after Chile are the safest, most stable markets in the
region with abundant opportunities in our targeted industries. Because these
countries are highly developed by regional standards, returns are likely to be more
modest, but there is a substantially lower risk of loss, excellent protection of
property rights, and generally free enterprise values that permeate this set of
countries.
Peru, Colombia, Honduras and Guatemala have become mature handlers of their
economic policies in recent years and are poised for dramatic growth similar to the
growth Brazil has undergone in the past decade. Although these markets are a bit
trickier to navigate than the countries previously discussed, we have partners on the
ground with decades of experience in these markets who are well-equipped and
prepared to oversee our efforts there.
Argentina and Ecuador are usually considered dangerous ground for foreign investors,
but not altogether off-limits. In our targeted industries, we believe there are
tremendous opportunities for careful engagement in these two countries, but we are
committed to steering clear of controversial businesses, “strategic” resources,
media, and other activities that might be more likely than others to run into
political trouble.
Mexico is generally outside of our scope of operation and our network there is
rather weak. This, combined with the ongoing violence and disruptions caused by
the drug cartels, we do not intend to pursue investment opportunities in the
Mexican market in the near-term.
Brazil may be the economic giant of Latin America, but with the linguistic and
cultural differences from the region’s other markets, we do not plan to make near-
term or medium-term investments in Brazil, though we think an integrated Brazil
strategy will be essential for the success of our portfolio investments in the other
countries nearby and consequently we maintain an active and ever-growing
network of contacts and relationships there.
Venezuela, Bolivia, Nicaragua, and Paraguay are, because of their political risk profile,
completely off-limits for our activities. We do not believe there are viable long-term
or short-term opportunities in these markets that would not be riddled by
difficulties stemming from the governments of these countries and we have no
intention of investing there until new governments are in place.
1. Rapid increase in the size of the global middle class (Eastern Europe, Asia, Latin
America), driving up demand for agricultural goods, energy, raw materials, and
“experience economy” goods & services, which tend to be heavily reliant on real
estate.
2. The aging of Japan and Western Europe, diminishing the workforces in those
countries, causing debt deflation, and necessarily reducing their own political
and economic influence.
5. Latin America, the Islamic World, and Asia (except Japan & China) are the only
regions of the world that have stable birth rates and neither an abundant youth
population (Africa) nor an overly gray population (Japan, Western Europe, and
the non-Hispanic US). China’s One-Child Policy has created not only a gender
imbalance, but an age imbalance as well, whose long-term political and
economic implications remain unclear.
Team
Skinner Layne, Founder & Chairman
Mr Manno has been part of the Lastarria Group since its founding, and has since
begin splitting his time between Rome and Santiago, developing Lastarria’s
European marketing strategy. Prior to joining Lastarria, Mr Manno spent 5 years
in Estonia serving as CEO of Klemmer Invest OU, an investment consultancy
company involved in studying and opening the Baltic market for the Italian
enterprises.
Prior to founding Klemmer, Mr Manno was started one of the first Internet
Service Providers in Italy, founding the first internet service provider in the
southern region at the end of 1994. Subsequently, he founded “bid.it Spa” the first
auction online company in Italy in the 1999, his company was one the biggest
internet company of the new economy era in the Italian market, and was valued at
€200 million at its peak.
Previously, Mr Manno was the production manager of the Snia Bpd, the then
chemical conglomerate company of the FIAT Group, and served as chief
production manager of Fapack Spa, a plastic film manufacturing company. He
holds a Bachelor’s degree in Mechanical Engineering from the Bari Polythecnic
University in Bari, Italy.
At Highbridge, Mr Resnick was responsible for all hedge fund, investment adviser
and broker-dealer legal and regulatory matters, including those arising from
convertible bond arbitrage, event-driven/relative value investing, risk arbitrage,
PIPEs, private lending, distressed and special situation investments, options and
commodities transactions, total return swaps and credit default swaps. He also
handled, responded to and resolved all regulatory investigations, audits,
examinations and inquiries. Mr Resnick also hired all legal, regulatory and
compliance personnel for Highbridge’s offices worldwide.
Mr Resnick has advised on, among other matters, private placements, the QIB and
Rule 144 provisions of the Securities Act of 1933, the disclosure and reporting
provisions of the Securities Exchange Act of 1934, including Section 13 and
Section 16; the Investment Company Act of 1940; the Investment Advisers Act of
1940; the Commodity Exchange Act of 1974; and the regulations and rules of the
NASD, the NFA, the U.K. Financial Services Authority, the Cayman Islands
Monetary Authority, the H.K. Securities and Futures Commission and The Irish
Stock Exchange.
Given current demand for energy, especially in Chile, we look for projects that can
be quickly brought to market in hybrid PPA/Spot Rate scenarios that guarantee
investors a base return while taking advantage of the tremendous short-term
potential upside in the spot market.
Within the energy sector, we have developed relationships with two principal
providers of independent technical services:
KEMA www.kema.com
A global, leading authority in energy consulting and testing & certification, active
throughout the entire energy value-chain – in a world of increasing demand for
energy, KEMA has a major role to play in ensuring the availability, reliability,
sustainability and profitability of energy and related products and processes.
KEMA combines unique expertise and facilities, in order to add value to our
customers in the field of risk, performance and quality management.
With more than 1,600 people and offices and representatives in more than 20
countries around the globe, we are committed to offering reliable, sustainable and
practical solutions. We understand and recognize the technical consequences of a
business decision, as well as the business consequences of a technical decision.
Natural Power www.naturalpower.com
Trends
1. The emerging global middle class is characterized by more than 500 million
people coming out of poverty in the last 20 years, meaning a rapid increase in
demand for non-staple foods. The next 20 years will witness at least as much
growth in the global middle class if not more.
2. Overall population growth will continue to put substantial pressure on staple
food crops. By 2050 the world’s population is expected to reach 9 billion, up
from 6.8 billion today.
3. Expansionary monetary policy in the United States is causing global
inflationary pressures in food and other commodities.
4. The Middle East & North Africa cannot domestically cultivate sufficient
quantities of agricultural products and actively seeking arable land in foreign
markets to bolster their food security, which is considered an increasingly
important part of maintaining political stability.
5. Soil is eroding worldwide at catastrophic rates due to industrialized farming
practices. Some key statistics to consider:
- 75 billion tonnes of soil is lost annually
(Source: Carbon Farming Conference)
- 80% of the world’s farming land is moderately or severely eroded
(Same Source)
- In China, soil is being lost 57 times faster than it can be replaced through
natural processes; in Europe 17 times; in America 10 times
(Source: University of Sydney)
- If current trends continue, the world’s stock of fertile soil will be
exhausted in 60 years
(Same Source)
6. Skyrocketing oil prices and the approach toward Peak Oil expose the long-kept
secret of the Energy-Agriculture ponzi scheme that predicated the geometric
increase in food production during the second half of the 20th Century.
Massive inputs of fossil fuels into industrialized farming, both for energy and
for fertilizer, are the primary reason for the relative abundance of food in the
past 50 years. As the new economic equation makes this less sustainable,
agricultural production will begin to falter.
7. Legal mandates and energy prices in general have driven the replacement of
food-producing land with crops utilized in the production of biofuels. Even so-
called 2nd generation biofuels that are derived from non-food plants compete
with food by occupying agricultural land that would have otherwise produced
food.
Lastarria AgriSecurity
For these reasons, Lastarria’s efforts in agriculture are pursued under the banner of
what we call “AgriSecurity,” bringing innovative thinking and management to
agricultural assets, focusing on long-term sustainability and productivity, and
seeking to be unique in our approach to this asset class. Lastarria’s AgriSecurity
efforts are characterized by:
Real Estate
Developing economies encounter numerous growing pains during their ascent,
many of which are associated with rapidly changing consumer preferences. With
the emergence of a stronger middle class, the types of product offerings demanded
by consumers evolves with increased purchasing power. Residential and
commercial real estate have “legacy” issues, where old properties no longer
sufficiently serve the needs of consumers. Furthermore traditional real estate
developers in emerging markets often fail to see the underlying demand shift of
new consumer preferences, mistakenly thinking that consumers simply demand
more of what they have been buying rather than demanding something new
altogether.
Technology
New technology is an essential component of an broad-based investment strategy,
and Lastarria seeks to implement the latest technologies across our investment
portfolio as yet another way to set ourselves apart from our competitors in the
region. This means that we will also engage with selective technology developers to
assist with their own capital needs, whose technology we believe adds strategic
value to our other operations.
The Dealbook
Lastarria’s marketing approach with investors is direct and straight-forward. We
will develop 1-page summaries for each of our deals which will be collected into an
ever-changing “Dealbook” that we will share with each of our investors. If there is
serious interest in one or more deals, we will work through the due diligence
process with our investors until they are comfortable with the decision to close, and
then we will take the lead in the oversight and administration of the deals while
always involving investors as much or as little as they desire.
Service Providers
Baker Botts - U.S. & International Legal Counsel www.bakerbotts.com
Baker Botts is a full-service, leading international law firm with a more than 170
year history and offices around the world. The firm is an international leader in
the energy & natural resources sector, both for oil & gas and alternative energy.
Who’s Who Legal designated Baker Botts as the Law Firm of the Year for Oil and
Gas for five out of the last six years, and the firm has consistently earned numerous
other awards, such as Energy Projects Law Firm of the Year by Chambers USA
and Deal of the Year by Project Finance & Energy Risk.