Pushing for high yielding brownfield investments

Durrant Pate/Contributor

Jamaica-based private equity firm Delta Capital Partners is clearing the air that it has no interest in venture capital opportunities.

Venture capital opportunities typically refer to early-stage startup companies that are in need of capital to get them up and running.

In an exclusive interview with Our Today, Executive Chairman Zachary Harding made it clear that, “Delta is deliberately taking a different course from the venture capital route already tried by many”.

Noting that these ventures tend to be higher-risk, Harding emphasised that only one in many will actually succeed.

Said Harding: “You can afford to play that game if and when you have lots of cash or a lot of time on your hands to try and find the right diamond in the rough. Delta is not interested in that game right now.”

He noted that Delta Capital is not taking such a route at this time, particularly given the fact that he has just exited Stocks and Securities Limited as investor and CEO, having divested its venture capital subsidiary SSL Venture Capital over a month ago.

Harding told Our Today that he was clearing the air so that it is understood that Delta Capital has no interest in competing in the venture capital space.

Brownfield investment opportunities being exploited

At present, Delta Capital is looking at exploiting investment opportunities in existing companies in operation for several years, which are already profitable and cash-flowing.

“We raise money and then we buy into these companies, taking a significant equity stake (no less than 20 per cent) with our view of maximising the potential upside of those companies through scaling them regionally or growing them significantly by leveraging other businesses in our portfolio,” Harding explained.

Additionally, the Delta Capital executive chairman highlighted that the private equity firm, which two months ago expanded to Barbados, may also launch its own companies using best-in-class technologies or global relationships.

Harding stated that all companies in which Delta Capital invests go through a thorough due diligence internally and then validated through external third-party diligence and analysis before making a decision on whether to invest.

He asserted that Delta Capital is an active investor, adding “we insert ourselves to boost investees management, strategic thinking, and governance. We sit on their boards. We leverage and synergise complementary solutions and operations across opportunities for greater value-add. We integrate our investees’ products, services, and other capabilities to cross-fertilise across our ecosystem of investment companies”.