Asset Management

WCA professionals have an excellent track record in developing and implementing value enhancing strategies

  • WCA has the experience and expertise in finding, financing, and acquiring businesses
  • On behalf of clients, we also monitor investments across a wide array of industries, including:
    • Real estate development
    • Middle market manufacturing
    • Agribusiness
    • Agro-industrial
    • Mining
    • Natural resources
    • Steel production
  • WCA sources and audits investment opportunities in both China and LATAM
  • WCA seeks to underwrite up to 10% of each investment opportunity, with a sweet spot investment range of US$ 15-30mm
  • Current Engagements include:
    • Palm oil extraction plant in Colombia and Papua New Guinea
    • Pig iron production in Colombia
    • Sustainable forest management and timber production in Papua New Guinea
    • Manganese mining investment in Burkina Faso
    • Iron ore fine pelletizing equipment in China
    • Real estate development fund in Greater China

China – LATAM

The China-LATAM relationship is getting stronger every year

  • China investment in LATAM was up almost 50% y-o-y in 2010
    • The majority of this went into mining, natural resources, infrastructure, and agribusiness projects
    • With fewer alternatives to invest its surplus capital, it is estimated that China FDI in LATAM will continue to increase in these sectors, but also in general manufacturing, technology, banking, and financial services
  • The governments of China and LATAM countries have recently made strides to strengthen political and economic ties
  • Similar to China, LATAM is entering a period of growth in the emerging middle class, leading to a perception of increased future consumption
  • Core LATAM countries also boast a developed legal system and skilled labor force
  • China is in a unique position compared to the developed nations, having a strong balance sheet with an estimated US$2.6 trillion in reserves
  • The development of South-South relationships and trade between China and LATAM is a political mandate from the Chinese government. EXIM Bank has allocated approximately US$5 billion to specifically finance Chinese investments in agribusiness in LATAM alone

China – LATAM Strategy

WCA’s investment strategy is to acquire operating businesses in LATAM through direct investment and co-investment with our existing strategic partners whereby we can add value by connecting the investment to China

  • WCA seeks to acquire majority or minority equity stakes in LATAM companies with healthy cash flow margins and excellent management, in a product market which is growing either domestically in LATAM, in China, or both
  • Our focus is primarily in the mining, natural resource, agribusiness, farming, and real estate sectors
  • When appropriate, WCA looks for platform acquisitions in a product sector in which consolidation can produce value and position the enterprise for one of several exit transactions
  • WCA has several key competitive strengths that will help it realize the potential of China-LATAM cross-border investments:
    • Equity partnership with Valorem, a major Colombian investment holding company with over US$ 1 billion in total assets
    • A proven track record in LATAM, investing in mining, natural resources, agribusiness, petrochemicals, manufacturing, real estate, and media
    • Proprietary pipeline of investment opportunities through a strong network of business and governmental connections
    • A seasoned management team
    • Significant capital commitment from its clients