This focus stems from the insightful vision of its founders, Robin Orloff and Vinicius Costa. With rich backgrounds in leading firms such as Accenture and Merrill Lynch, where they primarily engaged with top-tier publicly traded companies and large conglomerates, Orloff and Costa sought to leverage their deep industry knowledge and expertise to benefit Brazil’s middle market.
They identified a compelling contrast in the operational dynamics between publicly traded and family-owned companies. Particularly within the family-owned business sector, each company possessed its own unique viewpoints, strategic approaches and P&L structures, even when operating within the same industry.
It was this variance that intrigued them, and where Vestea Capital found its true calling.
Orloff notes, “We are actively engaged on the buy-side of transactions, a path less traveled among M&A boutiques and investment banks catering to family-owned businesses. While the majority of our peers prefer or focus solely on sell-side mandates, attracted by the prospect of larger deal sizes and higher fees, we consciously choose to align our operations with the needs and interests of our clients—mostly family-owned businesses but also multinationals seeking to expand their operations in Brazil.”
The team’s strategy is, therefore, a balanced blend of the financial metrics of each deal and the subjective, personal elements that characterize the decision-making process of family-owned companies.
Acknowledging the common hesitancy among family businesses toward acquisitions, Vestea Capital has developed a tailored approach to assist these enterprises in navigating the intricate landscape of M&A.
The magic lies in its proactive engagement with family-owned companies, taking the lead in reaching out to them and offering counsel on how acquisitions can serve as their valuable growth strategies.
Armed with this knowledge, Vestea Capital identifies and recommends potential acquisition targets that not only align with the client’s objectives but present a practical alternative to developing new operations from scratch—a process known as greenfield development. Turning once hesitant or unaware sellers into willing participants in negotiations emphasizes Vestea Capital’s pivotal role in the M&A arena.
When we engage in a buy-side project, we ensure compelling opportunity aligns with our client’s strategic objectives and creates value before proceeding further. However, if the deal does not make sense or fails to meet our strict criteria, we are not afraid to walk away
“If we find that a deal does not satisfy our rigorous criteria from the buy-side perspective, we readily step back,” says Costa, co-founder, reflecting their dedication to prioritizing clients’ best interests over simply concluding transactions.
The story of Krona, a leading entity in the Brazilian PVC piping and connections sector, exemplifies this commitment. Already eyed by many M&A boutiques and major investment banks as a prime acquisition candidate for industry giants, Vestea Capital charted an alternate course for the company. The team advised against selling at that particular moment and, instead, they posited a groundbreaking strategy: “Why not bolster your business through strategic acquisitions of your own instead of selling to industry giants?” This proposition, previously unconsidered by Krona, led to the successful acquisitions of both Grupo Linear and Viqua in 2023, significantly enriching Krona’s product lineup and distribution network and solidifying their market position.
Stories like this illuminate Vestea Capital’s mission to proactively find and advise family businesses, paving their path to unlock growth opportunities in the Brazilian market and secure their legacy for generations to come.
