Proven Success Story
Since its foundation in 2001, Axxon has been exclusively engaged in the Private Equity activity.
Management Focused on Value Creation
The focus of Axxon’s operation is, above all, on the optimization of the operational performance of the investees by the funds managed by it.
Unlike many private equity firms, Axxon is not based on financial leverage (increased indebtedness) or financial engineering to seek superior return on the investments made by the funds. Its main focus is to help optimize the investees’ operational performance. Axxon’s value creation initiatives include, but are not limited to:
• Negotiation of partnerships with professional managers to develop detailed operational, financial and strategic initiatives, aiming at a significant increase in revenues and operating profit;
• Providing modern management and corporate governance techniques, with emphasis on transparency, information and operational systems and financial controls;
• Advisory in structuring clearly defined variable compensation programs, designed to attract, retain and motivate high-level executives; and
• Identification, analysis and advisory in strategic acquisitions.
Experienced Investment Team
Axxon’s investment team has expertise in various sectors of the economy and corporate functions. In total, the partners accumulate more than 50 years of experience in operations, consulting, capital markets, mergers and acquisitions, and private equity in Latin America. It is important to highlight that the partners have been working together for an average of more than [ten] years.
Over the past two decades, partners have gained extensive experience and understanding of how to address the challenges and opportunities of medium-sized (and often family) companies in Brazil, leaving them largely equipped to assist the funds in the decision-making.
Axxon’s partners invest their own resources in the funds they manage, generating alignment of interests with their partners and investors.
Disciplined Investment Strategy
Axxon is focused on the small and medium-sized companies segment in Brazil because it believes that this segment is more appropriate to its approach and active management experience, aimed at improving the investees’ performance and growth.
Axxon’s modus operandi developed throughout the investment cycle (origination, investment decision, value creation and withdrawal) has been extensively replicated and tested over the past few years. The result is a well-structured investment process that makes it possible to maximize the return on the time invested in the process.
Axxon Investment Platform
Axxon seeks to assist on leveraging the investees’ performance by the funds through the capacity of its investment platform, which includes: (i) business relationships of Axxon’s executives and their investees with potential partners (including clients, financial community, class entities, consultants), (ii) increased bargaining power with suppliers and service providers, (iii) support for human capital supply, and (iv) access to capital to execute the business plan, among others.
Diversified Institutional Investor Base
The vast majority of the fundraising by the funds managed by Axxon is carried out through a broad base of foreign institutional investors such as endowments, insurance companies and pension funds which in turn adopt a long-term investment vision/strategy.
This creates a favorable environment for Axxon to assume long-term strategic positions and with more attractive returns, since the pressure for monetization of investments is typically lower than in other investment funds, especially in times of financial crisis and an unfavorable macroeconomic scenario.
Ethics and responsibility have been two of Axxon Group’s pillars since its founding in 2001. In this context, we believe that environmental, social and corporate governance (ESG) matters, when properly managed, can create value for our investees, our investors and the Brazilian society as a whole.
In 2014, we entered into a partnership with SITAWI Finanças do Bem, a Brazilian organization that specializes in the subject, to move forward with the process of integrating ESG matters throughout our investment cycle – from identifying potential investors to the withdrawal, looking for value creation opportunities.
We also incorporate ESG matters into our internal processes, coach our staff, and are continually developing better ways to report results to our investors. Moreover, we have become SITAWI’s Gold Supporters, collaborating with the organization’s work of developing financial mechanisms for positive social impact.