Celebrating 2022 Hispanic Heritage Month
Greeting from the CEO
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Hola NAA Familia,
Once again, we come to that time of the year when we officially celebrate Hispanic Heritage Month from September 15 to October 15. However, I do hope you celebrate your Hispanic heritage all year round. We do this in many ways, from the fabulous Hispanic gastronomy (carne asada, ropa vieja, tacos, tortilla Espanola, empanadas, tajadas, flan, margaritas . . .and on and on) to our language and our music.
Spanish is interwoven throughout the Hispanic culture and ties us together. Spanish, the beautiful language that, some say, is fairly easy to learn but nearly impossible to master. Some of our cities/states are peppered with Spanish names: California, Florida, Colorado, San Francisco, and San Diego, to name a few. Were you aware that the first European name for Manhattan was Tierra de Gómez? This stands to reason since Spanish was the first European language spoken in our country.
And then there is our music! Ah, our music that livens the heart and compels the feet to move. These heritage components have become integrated into the cuisine, language, and music of many non-Hispanic Americans. This is the gift of diversity and inclusion, such a glorious enrichment to every one of us. As Mexican author Carlos Fuentes observed:
“People and their cultures perish in isolation, but they are born or reborn in
contact with other men and women, with men and women of another culture,
another creed, another race. If we do not recognize our humanity in others,
we shall not recognize it in ourselves.”
As I have mentioned before, what is not to like about being Hispanic?
Under NAA Voices, Gabriel J. Rodriguez, Chair of the Board, shares his thoughts about what it is to be Latino in the US. And we pause to give a big abrazo and to say ¡felicidades! to Avante Capital Partners and HCAP Partners on their successful efforts in raising their funds.
We welcome Alejandro Guerrero from Act One Ventures to the New Member Spotlight. When I speak to potential new members, I often get the following question: What makes NAA special? My answer is always the same: Besides our focus on economic empowerment, the next generation, political awareness, being a voice for Hispanics, and giving back? It is simple: the people. Please reach out to Alejandro and let him know of the richness and generosity of our members. As a reminder, please find NAA’s Membership Principles below.
September also prompts us to get ready for the new 2022 NAA National Virtual Tour, whereby NAA connects with multiple institutional investors. We leave the Spring session for new institutional investors, and the Fall session is dedicated to old friends; however, some new friends may show up. Stay tuned.
¡Muchísimas gracias a todos!
Un abrazo,
Solange F. Brooks
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NAA Voices
Gabriel J. Rodriguez, NAA Chair of the Board, Empiric Institutional LLC
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Frijoles y Habichuelas
I grew up in the border town of McAllen, Texas, an hour and a half drive from Monterrey, Mexico, where my grandparents, aunts, uncles, and cousins lived. Like so many immigrants before and after them, my parents immigrated to the United States before I was born to improve their lives and the lives of their children. As a child, I listened to Vicente Fernandez, Jorge Negrete, Pedro Infante, and Javier Solis driving with my father in the car, or heard him sing “esa tierra de Cocula,” “pero sigo siendo El Rey,” “Voz de la guitarra mia,” or “Yo soy Mexicano” to name a few at parties.
Similarly, he would also take me to see The Three Tenors, Luciano Pavarotti, Placido Domingo, and Jose Carrera whenever the opportunity presented itself.
In high school, my friends who were also first-generation Americans from Latin America but not Mexican like me would listen to Salsa, Merengue, Cumbia, Bossa Nova, Samba, and Reggaeton which would make for very enjoyable gatherings. Growing up on the Texas border, listening to Tejano and Country music was also normal. Our experiences varied but were similar in many ways. So, what does it mean to be Latino in America? Like that musical experience of me and my friends - varied, yet similar.
September 15th marked the start of Hispanic Heritage Month in the United States. During this month-long celebration, the contributions and culture of Hispanic and Latino Americans are thrust into the national spotlight as a homogenous group. The Latino community is not monolithic, we represent over 20 different countries each with a different way of speaking Spanish (and let’s not forget Portuguese and even French, and Creole and a myriad of indigenous languages along the way) and heritage.
Take the word beans, which in Mexico, Central America, and Peru is Frijoles but in Argentina, Bolivia, Chile, Paraguay, and Uruguay is Porotos yet in Venezuela is Caraotas and in Dominican Republic, Habichuelas. We possess a wide range of characteristics and attitudes based on our unique cultural backgrounds and the shared experience of being Latino in America. Though we are from our small parts of the world, many of our family life stories are similar in that our families came to the United States of America for something better. Some fled political oppression or insecurity or immigrated for economic opportunity. What binds us together is our entrepreneurial spirit, grit to achieve, and cultural pride.
The Latino entrepreneurial spirit is evident in our contribution to the U.S. economy. Against all odds, the number of Latino-owned businesses has grown 34% over the last 10 years compared to just 1% for all other small businesses according to a recent study by Stanford University. McKinsey & Company found that over the past five years, 1 in 200 (0.5%) Latinos has started a new business compared to 0.3% for the next highest groups (White and Asian).
Over the same period the number of Latino-owned employer firms has grown by 12.5 percent annually, compared with 5.3 percent for White-owned employer firms. Latino buying power as of 2020 was $1.9 trillion a growth of 87% from 2010 to 2020, while the combined buying power of the U.S. consumer grew by 55% to $11.3 trillion (University of Georgia’s Selig Center for Economic Growth). Latino buying power in this country puts us ahead of Italy, and if we combined all Latin American countries with U.S. Latinos, the pan-Latino economy would be larger than Japan.
People make assumptions in this country about Latinos, we are often painted with one brush as undereducated, dangerous, and violent. This could not be further from the truth. We are the economic engine of this county, and without Latinos the economy would struggle to grow. Today we make up 18.4% of the population of which 67% are U.S. born and we are projected to be 30% by 2060 with 76% being U.S. born (US Census Bureau).
Our shared connection is our rich culture, food, and language. We have an entrepreneurial spirit and a strong work ethic. So, whether you prefer Salsa (to dance, not with them chips), Samba, or Norteñas, or ask for some frijoles or habichuelas with your arroz, know that the plate is always served with much love and, if it’s at a local eatery, likely served by an immigrant with the entrepreneurial zeal and tenacity to make this their new – or old home.
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NAA Members' Recognitions
Avante Capital Partners Announces Final Close on $450 Million Fund III
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Avante Capital Partners is a women-owned private credit and structured equity fund headquartered in Los Angeles. They invest up to $45 million of capital in the form of unitranche debt, mezzanine debt and minority equity in high-quality, lower middle market businesses. |
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Avante Capital Partners, a women-owned private credit and structured equity firm, is pleased to announce that it has completed the final closing of Avante Capital Partners SBIC III, LP, and Avante Capital Partners SBIC III-A, LP (collectively “Fund III”). Fund III was oversubscribed by 50% and closed with a total of $450 million of capital commitments, including leverage from the Small Business Administration. Fund III received strong commitments from new and existing investors, including pension funds, insurance companies, endowments, family offices, banks and other institutional investors.
Over the past 13 years since its founding, Avante has leveraged its unique origination network and rigorous investment process to generate strong returns for its investors. At the same time, Avante’s focus on diversity has helped drive meaningful change across the industry. Avante’s entire team believes that diversity is not just a value but a mission-driven focus that drives lasting competitive advantage and top-tier returns. Avante has championed diversity initiatives throughout private equity, partnering with federal agencies and advocacy groups, providing a pipeline of diverse talent for management teams and boards, supporting women and people of color across the industry and launching a trailblazing internship program while continually expanding its own diverse team.
Avante will pursue the same investment strategy and diversity mission for Fund III as it did for its prior two top-tier funds – providing total debt solutions and junior capital to high-quality, lower middle market businesses with $3 million to $20 million in EBITDA. Fund III will focus on supporting private equity sponsors in buyout transactions, recapitalizations, refinancings, acquisitions, and growth capital with investments in the form of unitranche debt, subordinated debt, and minority equity.
“Thank you to our limited partners for the overwhelming support we received for our third fund,” said Jeri Harman, Avante’s Founder and Chairman. “We are grateful to have so many partners who believe in our proven strategy, our unique team, and our continued mission to not only deliver superior returns but also to increase diversity within the private equity and finance industry.”
“We are firm believers that to whom much is given, much is required. As such, we are thrilled to be partnering with each and every one of our limited partners. Their support will enable us to continue to strive for excellence both in generating best-in-class returns and in driving positive change within our industry,” said Ivelisse Simon, Avante’s Managing Partner. “Our team is excited to be embarking on this journey to broaden and deepen our impact as a leading capital solutions provider in the lower middle market.”
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NAA Members' Recognitions
HCAP Partners Announces Final Close of New $353 Million SBIC Fund
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HCAP Partners is a diversely owned private equity firm based in San Diego, specializing in providing mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. |
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HCAP Partners, a California-based private equity firm and nationally recognized impact investor, today announced the final close of its second SBIC fund, HCAP Partners V, L.P. (“Fund”). The Fund was oversubscribed with total commitments of $353 million including anticipated leverage from the SBA, exceeding the initial fundraising target by over forty percent. Operating as a U.S. Small Business Administration SBIC (Small Business Investment Company), the Fund will continue the firm’s strategy of investing in underserved businesses in the lower middle market and implementing the Gainful Jobs Approach™, its platform designed to measure and improve job quality standards across its portfolio.
More than twice the size of its predecessor fund, HCAP Partners V, L.P. had strong support from a diverse investor base of existing limited partners from previous funds and new limited partners, including highly regarded foundations, financial institutions, and family offices. The firm is currently deploying capital from its new Fund with a focus on investments in the healthcare, software, and services industries.
“We are grateful for the confidence placed in us by both our returning and new investors," said Tim Bubnack, Managing Partner of HCAP Partners. "This backing is a reflection of the strong team we have built and all of their hard work supporting the success of our portfolio companies. The new funding enables HCAP to continue providing creative and flexible deal structures to growth-stage companies. As a leading impact investor, we are excited about expanding our portfolio and providing not only capital solutions but also our expertise to companies in our target markets.”
"The strong backing of investors and the industry's growing recognition of the attractiveness of funds like these is encouraging for the bright future of impact investing," said Ford Foundation Director of Mission Investments Roy Swan. "We are proud to support HCAP Partners and its work to unlock resources for underserved businesses so they have the tools they need to grow, spurring new opportunities and high-quality jobs where they're needed most."
HCAP Partners is focused on the lower middle market, serving companies seeking debt and equity for growth, acquisitions, and other strategic initiatives. The firm actively engages with its portfolio companies to provide value-added resources such as operational and financial guidance, capital raising, and strategic exit planning. Through its Gainful Jobs Approach™, HCAP works to facilitate a positive impact by implementing workplace initiatives within its portfolio aimed at creating and maintaining high-quality jobs.
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New Member Spotlight
Alejandro Guerrero, Act One Ventures
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Act One Ventures is a venture capital firm that leads seed investments in e-commerce infrastructure, vertical SaaS, and fintech for capital-efficient companies with excellent founder-market fit. The firm’s inaugural fund is among the top 5% of all venture funds from vintage 2016, having already returned 200% of paid-in capital and operating at 53% net IRR and 5x TVPI. Overall, Act One manages $140 million across three funds and 10 follow-on SPVs.
The firm was founded in 2016 by entrepreneurs Michael Silton and Alejandro Guerrero, who met and began working together several years prior at the UCLA Venture Fund. Both are also alumni of the prestigious university and have cultivated a deep and diverse network of advisors and mentors for portfolio founders, partly through their UCLA connections.
Alejandro is a first-generation Mexican-American startup founder who has become one of the most visible and fastest-rising emerging managers in America, where only 3% of investment partners are of Latinx descent. The firm’s commitment to diversity in business is reflected in its portfolio companies, 70% of which were founded by women and/or people of color. As a founder himself, Alejandro offers a unique perspective on the startup journey and VC worlds to Act One’s portfolio founders. His advice and connections help founders build scalable businesses from the earliest stages.
Alejandro is also the founder of the Diversity Term Sheet Rider for Representation at the Cap Table, a movement that began in 2020 following the murder of George Floyd. Known simply as the Diversity Rider, it is a call to action to include diverse emerging fund managers and angel investors in deals they otherwise might not have access to. To date, more than 100 venture firms have adopted the rider for their term sheets.
Being a member of the NAA offers an exciting opportunity for Alejandro to learn from other leaders, and to bring his own voice to continue to help Latinos find success and build a stronger America.
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Upcoming Events - Save the Dates! |
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RFPs and Career Opportunities |
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NAA supports matching high-quality professional talent with institutions across the United States. Interested candidates, please reference New America Alliance in your application and notify Jodi Towner at jtowner@naaonline.org once submitted so we may be aware of your candidacy.
Employers, you may submit information on current high-level and high-impact job vacancies to Jodi Towner at jtowner@naaonline.org.
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