Investment Strategies

Garcia Trujillo invests in early stage and mature companies in industries and markets that leverage the firm’s expertise and resources. Our partners are focused on two strategic investment platforms:

I. FOCUSING ON THE U.S. HISPANIC MARKET

Garcia Trujillo co-invests in businesses seeking to expand their product and service offerings to the Hispanic market.

RATIONALE:
The U.S. Hispanic population of approximately 47.8 million comprises about 16 % of the country’s population and is the largest and fastest-growing ethnic market in the United States. The U.S. Hispanic population has expanded by 24.4 %since 2000, accounting for nearly half of the increase in the U.S population for that period. In 2009, Hispanic purchasing power in the U.S. was $1 trillion and is estimated to continue to grow at a significant pace. By 2015 Hispanic purchasing power is estimated to top $1.5 billion, placing it among the top 8economies of the world and spurring parallel growth in the number of companies providing goods and services to this market.

We are positioned to take advantage of three important trends in the growing Hispanic market:

One - The high growth rate in the population and purchasing power of U.S. Hispanics continues to outpace other ethnic markets. Hispanic purchasing power is growing at an annual rate that is nearly double that of non-Latinos. Growth in the U.S. Hispanic population and personal disposable income has an exponential effect on dollars spent on products and services provided by companies that serve this emerging market.

Two – There is a continual focus by national corporations on the dominance of Latino culture and language among the U.S. population. The Spanish language continues to be a powerful identifier for Hispanics. And Hispanics tend to live in high-density areas, making it easier to target them.

Three - The growing interest of U.S. companies in reaching the Latino consumer as evidenced by Spanish-language marketing and major firms’ new product initiatives targeting Latino consumers in key industries.

II. Minority Business Enterprises (MBEs)

Garcia Trujillo Partners invests in companies that are minority suppliers and connects them with corporate buyers.

RATIONALE:

As the demographic face of the United States continues to change, minorities and the U.S. Hispanic market in particular will continue to grow at a rate of almost 10 times the general market. This growth will be fueled as the minority population increases from 28 %of the population to 50 %over the next 30 years. In spite of these trends, the share of corporate contracts awarded to MBEs is less than 10%. Corporate America is intensely focused on supplier diversity as a way to include MBEs in the supply chain. Supplier diversity allows Corporate America a mechanism to better balance its supplier base with its customer base.