Investing in Brazil is not about Macro but about a variety of local opportunities. Large companies such as Uber, Amazon, Microsoft, Softbank, and many others are proof of such statement ( .https://www.dxainvestments.com/media BloombergTV)
While the opportunities around the world have become expensive and volatile, Brazil offers local investment alternatives for international investors looking for multiples on their money. DXA favors sectors related to consumer demand and entrepreneurship, such as Franchising, a sector that has grown an average 7% per year in the last 5 years despite the sluggish GDP growth. Brazil is not a macro play, but its heaven for investors that do their homework to find local opportunities
DXA INVESTMENTS MANAGES $200 MILLION
97% of its assets are from US investors
DXA Investments companies grew on average 67% per year created more than 500 jobs 70 % of which went to women
DXA has been backed by North America investors and a is partially owned by a prominent NY based American family. They have been investing with DXA in the past 5 years and DXA’s composite investments have been yielding 23% net IRR in USD.
Investment Cases ZeeDog, Modern Logistic, Bebe Basico and more.
Oscar Decotelli is CEO & Founder
About Oscar Decotelli, CEO and Founding Partner of Brazil-based DXA Investments looks to deliver oversized returns by looking under the radar. DXA, which currently manages approximately $200 million from its offices in Rio de Janeiro, focuses on opportunities in small and medium-sized enterprises (SMEs) DXA was founded in 2012 for the purpose of finding unique and high-return opportunities in Latin America’s emerging markets that weren’t on the screens of the larger asset management firms.
Case Zee Dog SA (operating as Zee.Dog) fit DXA’s investment criteria. A pre-revenue startup based in Rio de Janeiro, the company was founded by three 20-something entrepreneurs as a lifestyle brand for pets and their owners. “The majority of millennials are putting off having kids, are moving into small apartments with their pets. The growth of home pets is probably the No. 1 trend that hasn’t been affected by any economic cycle in the last 10 years,” says Decotelli. “What we saw was an opportunity and when we find an opportunity, we run a macro kind of a thesis, and then find the underlying companies that fit into those theses.”By the time DXA was seeking a buyer for its stake, Zee Dog was operating two stores (the second in Las Vegas) and was selling accessories in more than 3,000 outlets in 20 countries.
DXA agreed in January to sell the stake to another private equity firm and began the process of identifying potential acquirers. However, Zee Dog’s founders raised enough capital to exercise their right to acquire the interest and matched the other suitor’s offer. The sale, which closed in March 2018, resulted in a return on invested capital of 12.4X, according to Decotelli.