Venture Capital and Private Equity Financing Study in the Caribbean

Funding Solutions & Capital Markets, GBRW Consulting, GBRW Group

LAVCA is the Latin American Private Equity & Venture Capital Association, a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America and the Caribbean.

LAVCA’s membership is comprised of over 190 firms, from leading global investment firms active in the region and local fund managers to family offices, global sovereign wealth funds, corporate investors, and international pension plans. Member firms control assets in excess of US$65bn, directed at capitalizing and growing Latin American businesses.

GBRW was appointed by LAVCA to undertake a comprehensive study of early stage equity and quasi-equity financing across the Caribbean region. The aim was to build a set of policy recommendations and practical projects which could be used to enhance access to finance for entrepreneurs and improve the investment environment. A diagnostic survey exercise was undertaken to estimate the current stock of equity-type finance in the Caribbean and to benchmark it against developed markets, most notable Canada and the US.

A structured questionnaire and interview phase was applied to diagnose the key barriers to investment in entrepreneurship in the region, and finally a desktop review of best-practice was assimilated into a detailed SWOT analysis. Practical outcomes included the development of a toolkit of enterprise development services and a database of investors and investees.

Deliverables included:

- A comprehensive stakeholder analysis identifying the key market participants

- Development of a detailed semi-structured questionnaire for primary research with stakeholders

- Desktop review of financing flows and equity stocks

- A benchmarking exercise against aspirational peers including Canada and the US

- Development of a though SWOT analysis

- Production of a detailed report with comprehensive recommendations