We provide non-control growth capital
Investment strategy
Alloy provides growth capital for Mexican middle-market companies that can take advantage of opportunities and demographics, and we partner with these companies during the expansion stage, providing them with capital and strategic support. Unlike most other sources of capital for capital available in Mexico, at Alloy, we evaluate companies based on their cash-flow, growth potential, and the management team’s demonstrated capabilities.
Strong free cash-flow
We look for capable management teams with actionable business plans that will generate strong free cash- flow that can return principal plus capital gains. We invest between US$ 5 million and US$ 25 million in each company.
We provide non-control growth capital
Alloy provides flexible capital that enables growth without taking control away from the owners. We work with business owners and managers and align our interests. We believe management teams should make decisions like owners and in fact be owners.
Unlike typical private equity firms, we do not need the companies to have a clear path to liquidity, and we don’t require business owners to commit to a business sale in the future.
A new capital approach
We understand that business owners of successful companies want to preserve operational control of their companies and maximize their ownership.
Alloy provides growth capital structured as a flexible credit facility, which enables the company to implement a business plan, increase scale, and eventually repay this loan while minimizing ownership dilution. Additionally, we engage with management teams by providing strategic support, while always respecting the manager’s operational autonomy.
You keep the control
Client retention of control bringing outside capital to a firm while minimizing dilution enables founders and early-stage investors to maintain control over when, how, or if they should sell the company. In our experience to date, most owners of very successful companies have preferred to maintain ownership for the long term.