Enrique Garza
Managing Partner
Crecimiento Programado
Eduardo Díaz Lozano
Eduardo Díaz Lozano
Managing Partner
Crecimiento Programado
View from the Top

Funding the Needs of the Mexican Market

Tue, 11/01/2016 - 15:55

Q: What is the Crecimiento Programado fund’s main differentiator?

A: The Crecimiento Programado fund specializes in financing adapted to the needs and characteristics of our clients. We mitigate risk by making sure our financing plans suit the client’s operation. Banks impose strict payment plans and conditions but we play with payment periods, methods and mechanisms, balancing these factors so that our clients do not feel trapped in a structure that does not work.

We give the market what it needs while showing investors ways to make a less risky product. Crecimiento Programado assesses every potential risk our clients might face and although we may not be able to foresee everything, deep evaluations are efficient preventative strategies. We make sure to avoid structures that put our clients at risk of noncompliance and our plans are built with space for economic contingencies. That flexibility has brought us success. By making a solid structure that can flow according to the needs of a business in a viable manner we generate more profit.

Q: How does the fund select its clients?

A: We thoroughly analyze a company’s history and operations before accepting it. The fund does not have the capacity to take on many projects because we dedicate a great deal of time and effort to each company. Our fund has never faced a nonpayment situation, even though some of our clients have undergone difficult economic periods. This proves the functionality of the structure we have built because it allows investors time to fix their issues without restrictions. We also pay attention to each of our allocations by following up as much as possible. The process is long and conditions are continuously changing but one of our best advantages is that our funding is not subject to taxes.

Q: In what projects is Crecimiento Programado currently participating in?

A: Our program finances projects that previously were viewed as impossible. We showed the market and assessors that assets are worth more when they are operational. The fund is not just selling a bus or a ship, but 50 years of experience working with successful companies. We structure our program differently than the rest because we not only factor in debt but also capital and the viability of a company. In certain cases, we even help companies in bankruptcy to mitigate the damage.

Q: What role does the program want to play in the Mexican market?

A: Crecimiento Programado is looking to expand into portfolio administration as structures are often not explained deeply or clearly enough. There must be a much more significant outreach to investors. The Mexican market also demands professional services of high quality. Many portfolios have made purchases without gaining the requisite knowledge and are now facing issues they do not know how to fix.

We also are involved in restructuring the Mexican Commercial Bankruptcy Law because our experience, including mergers and acquisitions, can be of value. In Mexico, insolvency is not meant to push companies into bankruptcy but to provide more viability. A business that is approaching insolvency must make a map of options to decide its next move. Even if owners cannot recover the business, it is better for them to clearly understand their position rather than leave the situation up in the air.