Advent-Morro Equity Partners: Company Profile

Background

Overview

Advent-Morro Equity Partners, established in 1989, is Puerto Rico's leading private equity investment firm. The firm has invested in over 50 companies across diverse industries, including healthcare, telecommunications, distribution, technology services, education, and hospitality. These portfolio companies collectively generate over $3.5 billion in annual sales and employ more than 3,000 individuals, significantly contributing to Puerto Rico's economic activity.

Mission and Vision

Advent-Morro's mission is to partner with companies of exceptional potential, assisting them in growth, reinforcing their competitive advantages, and establishing them as leaders in their respective industries. The firm's vision is to drive economic development in Puerto Rico by fostering the success of its portfolio companies.

Industry Significance

As the premier private equity firm in Puerto Rico, Advent-Morro plays a pivotal role in the island's economic landscape. Its investments span various sectors, including healthcare, telecommunications, distribution, technology services, education, and hospitality, underscoring its significant impact on the local economy.

Key Strategic Focus

Core Objectives

Advent-Morro focuses on growth and equity value creation, aiming to build companies of extraordinary value that become leaders in their respective industries. The firm seeks to partner with management teams looking for capital to accelerate growth organically or through acquisitions.

Areas of Specialization

The firm's investment disciplines include:

Growth Capital: Providing funding to companies to support expansion and development.

Lower Middle Market Buyouts: Acquiring controlling interests in companies within the lower middle market segment.

Key Technologies Utilized

Advent-Morro employs a disciplined investment approach, focusing on sectors such as healthcare, telecommunications, distribution, technology services, education, and hospitality. The firm leverages its expertise to identify and invest in companies with high growth potential in these industries.

Primary Markets Targeted

While Advent-Morro's investment mandate is not regional, most of its portfolio companies are based in or have operations in Puerto Rico. The firm also considers investments in the continental United States, particularly in companies targeting the U.S. Hispanic market.

Financials and Funding

Funding History

Advent-Morro manages over $120 million in equity capital. The firm has invested in more than 50 companies, with a median investment size of approximately $5 to $10 million.

Recent Funding Rounds

In June 2019, Advent-Morro launched a $20 million early-stage venture fund, Morro Venture Partners, to support technology companies in Puerto Rico. The fund reached a first close at $17.5 million, with investments primarily in technology companies based in or utilizing Puerto Rico for cross-border growth.

Notable Investors

Specific details about individual investors are not publicly disclosed. However, the firm's funding includes contributions from various institutional and individual investors interested in supporting economic development in Puerto Rico.

Utilization of Capital

The capital raised is utilized to invest in companies with high growth potential, focusing on sectors such as healthcare, telecommunications, distribution, technology services, education, and hospitality. The firm aims to accelerate the growth of these companies, enhance their competitive positions, and drive economic development in Puerto Rico.

Pipeline Development

Key Pipeline Candidates

Advent-Morro's portfolio includes companies across various sectors, such as:

Healthcare: Investments in clinics, surgical instruments, Med-ID systems, biotech, and pharmaceuticals.

Services: Investments in hospitality, education, media, consumer finance, music, water, and entertainment.

Technology: Investments in e-commerce, telecommunications, and online translation.

Other: Investments in food distribution, steel manufacturing, plastics technology, and shipping.

Stages of Development

The firm invests in companies at various stages, including startups and established firms, providing growth capital and support for expansion and development.

Target Conditions

Advent-Morro targets companies with high growth potential, aiming to accelerate their growth and reinforce their competitive positions.

Anticipated Milestones

The firm focuses on achieving significant growth and value creation in its portfolio companies, aiming to establish them as leaders in their respective industries.

Technological Platform and Innovation

Proprietary Technologies

Advent-Morro does not publicly disclose proprietary technologies. The firm's value proposition lies in its disciplined investment approach and expertise in identifying and supporting high-potential companies across various sectors.

Significant Scientific Methods

The firm employs a disciplined investment approach, focusing on sectors such as healthcare, telecommunications, distribution, technology services, education, and hospitality. This approach involves thorough due diligence and strategic support to enhance the growth and value of portfolio companies.

AI-Driven Capabilities

Specific details about AI-driven capabilities are not publicly disclosed. The firm's focus is on leveraging its expertise and resources to support the growth and development of its portfolio companies.

Leadership Team

Key Executives

Cyril Meduña: Founder and Managing Partner. With over three decades of experience in private equity, corporate finance, and entrepreneurial development, Cyril has played a transformative role in shaping Puerto Rico's investment landscape. He holds a Bachelor of Science in Mechanical Engineering from Rensselaer Polytechnic Institute and an MBA from George Washington University.

Allison Kern: Partner. Allison joined Advent-Morro in 2017 from StarVest Partners, a $250 million expansion-stage venture capital fund based in New York. She has experience in deal sourcing, due diligence, and serving as a Board Observer for portfolio companies.

David Ashe: Partner. With over 20 years of top management experience in multinational companies, David joined Advent-Morro in 2010. His work includes identifying businesses for expansion through private equity capital and supporting portfolio companies in their growth and globalization efforts.

Edwin Gandía: Analyst. Edwin is part of the investment team, contributing to the firm's due diligence and investment analysis processes.

Amarilys Rosa: Controller. Amarilys manages the firm's financial operations, ensuring accurate financial reporting and compliance.

José Tomás Echeverría: Senior Associate. José supports the investment team in various capacities, including financial analysis and portfolio management.

Leadership Changes

Specific details about recent leadership changes or appointments are not publicly disclosed.

Competitor Profile

Market Insights and Dynamics

The private equity market in Puerto Rico is characterized by a focus on growth capital and lower middle-market buyouts, with a particular emphasis on sectors such as healthcare, telecommunications, distribution, technology services, education, and hospitality. Advent-Morro's unique position as the leading private equity firm on the island allows it to leverage local market knowledge and networks to identify and support high-potential companies.

Competitor Analysis

Advent-Morro's primary competitors include other private equity firms operating in Puerto Rico and the broader Latin American region. These firms also focus on sectors such as healthcare, technology, and distribution, seeking to invest in companies with high growth potential. Advent-Morro differentiates itself through its deep local expertise, extensive network, and a proven track record of building companies into industry leaders.

Strategic Collaborations and Partnerships

Advent-Morro has established significant collaborations and partnerships to strengthen its market position and innovation capacity. Notably, from 1997 to 2010, the firm was affiliated with Boston-based Advent International Corporation, which provided additional resources and expertise. In 2015, Cyril Meduña led the formation of Parallel18, a leading tech accelerator based in San Juan, Puerto Rico, further enhancing the firm's engagement with the tech ecosystem.

Operational Insights

Advent-Morro's strategic considerations include leveraging its deep local knowledge and extensive network to identify and support high-potential companies. The firm's focus on sectors such as healthcare, telecommunications, distribution, technology services, education, and hospitality allows it to capitalize on growth opportunities within these industries. Its disciplined investment approach and commitment to value