Expected IRR Profile

Disciplined Entry Pricing:

The fund focuses on acquiring businesses at attractive valuations, typically:

• $1–6M EBITDA

• 4.0x–6.0x EBITDA for platform investments

• Add-on acquisitions often at even lower multiples

These valuations reflect:

• Limited competition

• Undermanaged operations

• Market complexity that discourages larger funds

• Lower entry pricing provides built-in downside protection and supports strong risk-adjusted returns.

Targets return:

• Based on conservative assumptions:

• Gross IRR: ~18%–22%

• Net IRR: ~15%–18%

• Gross MOIC: ~2.0x–2.5x

• Typical holding period: 5–7 years

• Returns are driven primarily by:

• EBITDA growth

• Multiple normalization

• Disciplined capital allocation

  
  

Exit Pathways:

The fund targets clear and well-established exit paths, including:

• Strategic buyers seeking entry or expansion in Puerto Rico

• Larger private equity sponsors acquiring scaled platforms

Structured recapitalizations following operational improvements

Exits are expected once businesses have achieved:

• Professional management

• Institutional reporting

• Scaled operations

• Stable, predictable cash flows