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Your background spans private equity, consulting, and high-growth tech. Could you tell us more about your professional experience and what inspired you to pivot to the SF model?
I grew up in a small town in the heart of the Argentine Pampas. After earning my engineering degree, I moved to Buenos Aires to begin my career as an engineering consultant. I then transitioned to strategy consulting, spending four years at Booz & Company working on classic consulting projects across the Southern Cone of Latin America.
With a strong desire to pivot into private equity, I pursued my MBA at London Business School. During that time, I interned at TA Associates, where I worked directly on a transformation project for The Access Group—one of the UK’s largest and most successful buy-and-build growth strategies. I then joined KKR Capstone in London, working hands-on with a portfolio company based in the south of Spain. Both experiences were transformational—they gave me the opportunity to be in the trenches, executing value creation with the mindset of an owner.
When COVID hit, my wife, our recently born son, and I decided to return to Latin America to be closer to family. I joined Rappi, one of the region’s most successful high-growth tech companies. It was another defining experience—combining leadership and execution with exposure to product and technology in a high-pressure, fast-paced environment.
At the beginning of 2024, a major personal event served as a wake-up call. As often happens in those moments, I asked myself the big question: “Am I truly happy with what I’m doing?” And the answer was no. That led to deep introspection, and a clear conclusion—I wanted to own and run my own company. I wanted to be the one making the decisions, creating value over the long term.
During my MBA, I interned with Patagonia Capital Partners, the first search fund in Argentina, and took the Search Fund course taught by Pacific Lake. So I already knew the model, both practically and academically. At the same time, Argentina was entering a potential turning point—macro reforms, policy shifts, and an abundance of SMEs lacking succession plans.
That’s when the pieces came together: my desire for ownership, my hands-on experience, and a unique window of opportunity in Argentina. In October 2024, I launched Netherwood Capital.
Fundraising is often one of the biggest hurdles when launching a SF, and I imagine it’s even more challenging in a country like Argentina. Were you able to convince local players to support your project? How did the fundraising process go, and what types of investors did you attract?
Fundraising for Netherwood Capital was one of the most intense and transformative experiences I’ve gone through. Doing it in Argentina — a frontier market with macro volatility, capital controls, and limited exposure to the Search Fund model — meant that I wasn’t just raising capital; I was building trust in a place where skepticism is the default.
I made a lot of mistakes early on. I overestimated familiarity with the model, underestimated how hard it would be to get investors comfortable with the risk, and faced rejection from people I expected would say yes. But those early failures forced me to improve — to sharpen the message, rethink the materials, and push myself to a higher level of discipline and clarity.
In total, I contacted 304 investors. After multiple follow-ups, 178 responded. Only 99 agreed to be pitched. Of those, just 64 were open to investing in Argentina, and 42 were willing to consider a Search Fund in the country. In the end, 19 investors across 9 countries joined the journey, and we closed the fund 18% oversubscribed — with an average ticket of USD 21k and a fundraising process that lasted seven months. I’m backed by a distinguished group of investors, including Ventus Capital Partners, Tres Coronas Capital, Bietou Capital, LV-Investments, BM Holdings, Colca Capital, KYR Capital, NOVIDAM, and SOARE HOLDINGS, as well as private investors and CEOs such as Alfredo Irigoin, Ariel Arrieta, Ignacio Cosentino, Marcelo Castro Zappa, Fernando Quijano, Nicolas Rudzki, Alexander Kirn & Till Bossert, Christoph Sehr & Jan Fritz, Jonathan Ferrari & Neil Cuggy, and Max-Otto Griesam.
The key to getting there was simple: Netherwood turned a frontier market challenge into a differentiated investment opportunity. While others saw volatility, I saw the upside in historic asset discounts, a shifting macro landscape, and the strategic advantage of being the only active searcher in the country. I became my own first believer — fully convinced that Argentina offered a unique chance to acquire quality businesses at compelling valuations with virtually no competition. That conviction, backed by data and reflected in a PPM built to institutional standards, became the foundation for everything that followed.
I approached fundraising with sequencing in mind: pitching early to refine the story, gaining momentum through anchor commitments from respected professionals who had seen me operate, and only then bringing in top-tier investors once the story was validated. The mistakes I made along the way taught me more than any success could have. They forced me to grow — and that growth is what ultimately allowed Netherwood to close the fund and start building something real.
What structure have you chosen to optimize cross-border capital flows, protect investor interests, and maximize long-term returns?
Investing in Argentina offers access to high-quality SMEs at historically low valuations—but doing so requires a structure that builds confidence and removes friction for international investors.
From the outset, I worked with DLA Piper to design a clean, credible, and internationally compliant framework. The Search Entity, where investors deploy capital during the search phase, is incorporated in Delaware—a familiar and widely accepted jurisdiction that ensures simplicity, legal clarity, and flexibility for future transitions.
For the acquisition phase, we’ve left the Holding Company structure intentionally flexible. It will be incorporated in either Uruguay or Delaware, depending on the specific characteristics of the company we acquire and what best supports operational and governance goals at that stage.
The country has now removed capital controls, which significantly improves the flow of funds and overall investor confidence. This policy shift, combined with a pro-business environment and strong local talent, further strengthens the case for investing in Argentina.
In short, our structure balances flexibility with transparency—giving investors the legal safeguards and operational agility needed to support long-term value creation across jurisdictions.
In the past, only one SF (Patagonia Capital Partners) pioneered this market, and ultimately acquired a company headquartered in Uruguay. Many international investors might be hesitant due to Argentina’s economic volatility (inflation, currency fluctuations, political uncertainty, etc.). How do you mitigate Argentina’s macroeconomic risks, and why does the SME landscape represent such an attractive opportunity for a Search Fund, especially compared to more mature markets?
While Argentina’s history of macroeconomic volatility—high inflation, currency fluctuations, and political uncertainty—can deter international investors, Netherwood Capital was built precisely to operate in this context. Our thesis is anchored on three core pillars: (1) structurally underpriced private assets, (2) a once-in-a-generation macroeconomic turnaround, and (3) a virtually untouched SME market with no local Search Fund competition.
Argentina is undergoing one of the fastest stabilization processes in recent emerging market history. Inflation has plummeted from over 300% in late 2023 to 36% in early 2025, with projections pointing to single-digit levels by year-end. The Argentine peso has appreciated, capital controls were lifted in April 2025, and the country is now running a budget surplus—making it one of only four countries globally, and the only G20 member, to do so. These changes are rapidly restoring investor confidence and macro stability.
The SME sector in Argentina is both large and underserved, accounting for 45% of GDP and 51% of formal employment. There are over one million SMEs in the country, with approximately 20,000 fitting the Search Fund acquisition profile: revenues between $5M and $50M, strong cash flows, no transition plan, and a presence in sectors such as agribusiness, services, and technology.
What makes this market particularly attractive is the combination of size, timing, and access. For over a decade, business owners delayed exits due to instability and poor valuations. Today, with macro reform in motion, the sentiment has shifted—market participants describe the environment as “all of Argentina is for sale now.” UBS BB forecasts a 9x increase in M&A activity in 2025 versus 2023, especially in sub-$20M deals.
Importantly, competition is virtually nonexistent. Netherwood Capital is currently the only active traditional Search Fund in the country. Compared to benchmark markets like the U.S., Spain, Brazil, or Mexico, the ratio of eligible targets per searcher in Argentina is up to 20 times higher.
Valuations further enhance the opportunity. Mid-market companies trade at 3.5x to 5x EBITDA—significantly below Brazil’s 6x–8x and the U.S.’s 8x–12x. During past periods of macro stability, Argentine multiples reached 8x–9x, making multiple expansion highly plausible as the country regains emerging market status and attracts foreign capital inflows.
In short, Argentina’s SME ecosystem combines macro tailwinds, favorable valuations, and a total absence of institutional buyers—creating a unique and compelling opportunity for long-term, operator-led investment strategies like the Search Fund model.
What kind of company are you looking to acquire in terms of size, sector, and characteristics? Could you walk us through your ideal target profile and your sourcing strategy? Also, leveraging buyouts in Latin America can be challenging. What are current interest rates like in Argentina?
Netherwood Capital is seeking to acquire a single, high-quality company in Argentina that combines operational resilience, strong fundamentals, and long-term growth potential. The target profile typically includes $30M–$40M in annual revenue, high recurrency, EBITDA margins above 10%, and an Enterprise Value of up to $30M. Preference is given to businesses with high return on invested capital, efficient working capital cycles, and reliable, cash-generative business models.
The sector focus is deliberately narrow and based on direct operating experience. Target industries include:
- Agribusiness, reflecting a deep-rooted understanding of Argentina’s rural economy and production dynamics.
- Technology, driven by several years of executive experience in fast-scaling Latin American tech companies.
- Business services, explored opportunistically to capitalize on Netherwood Capital’s status as the only active traditional Search Fund in Argentina, enabling access to proprietary, off-market opportunities that mirror successful transactions in mature Search Fund ecosystems.
The investment thesis is centered on B2B models with recurring or repeatable demand, though selective B2C businesses with strong brand recognition and customer retention may also be considered. Strategic focus is placed on companies where current ownership may lack the vision, succession planning, or capital to unlock the next phase of growth.
Netherwood Capital employs a multi-channel sourcing strategy, including proprietary outreach, partnerships with specialized advisors, and select collaboration with intermediaries. The firm’s unique position—local presence with global investor backing—has proven to be a differentiated and credible alternative for founders exploring transition options.
Recognizing that equity exits in Argentina remain relatively rare, Netherwood Capital is structured with a long-term ownership mindset. The goal is to operate the acquired company over a 20- to 30-year horizon, allowing for sustained value creation and capital compounding. Strong cash flow generation is essential—not only for reinvestment and growth, but to provide investor liquidity aligned with structured fund vintages, without relying on a traditional exit event.
What advice would you give to other aspiring searchers, especially those considering launching in underpenetrated or frontier markets?
All of Netherwood Capital’s learnings came from mistakes made during the fundraising and launch process. Entering a frontier market like Argentina—with no established Search Fund ecosystem, high perceived risk, and global investor scepticism—meant that every misstep became a learning opportunity. That journey revealed several key lessons for anyone looking to build a Search Fund in an underpenetrated or high-friction environment.
Credibility is everything, and it is not given—it must be earned. In uncertain markets, trust becomes the primary currency. That trust is built not through ambition, but through preparation, consistency, and humility in how the opportunity is framed and defended.
Several principles emerged as critical, shaped by what didn’t work the first time:
- Conviction isn’t enough unless it’s backed by data. Netherwood’s thesis—low entry multiples, a macro turning point, and zero local competition—only gained traction once it was validated by third-party data, comparable benchmarks, and logical risk framing. Early versions of the pitch were too hopeful, and were only taken seriously once they became analytical.
- The PPM is not just a document—it’s the first filter. One early mistake was underestimating how closely investors scrutinize materials in frontier markets. A strong PPM must be professionally built, clearly reasoned, and anticipate every hard question: Why this country? Why now? Why you? Anything less signals a lack of readiness.
- Early anchor commitments matter more than ticket size. Netherwood’s first backers were not the biggest investors, but the most respected. Their early support—built on prior trust—signaled credibility to others. This was a key turning point after early rejections. Even small tickets from the right names build essential momentum.
- Fundraising is a skill—and sequencing matters. Another early mistake was pitching top-tier investors too early. By adopting a tiered strategy—starting with less critical conversations to refine the message—Netherwood was able to dramatically improve delivery and approach Tier 1 investors with real traction and confidence.
The core takeaway is that in emerging markets, success goes to the most prepared, the most disciplined, and the most willing to learn from failure. Netherwood Capital’s ability to close an oversubscribed fund in Argentina wasn’t the result of a perfect plan—it was the result of a process that got stronger with every mistake.
We’ve seen other entrepreneurs beginning to raise SFs in Argentina, and recently an institutional investor also entered the space. Where do you see the Argentine SF ecosystem five years from now?
Netherwood Capital believes Argentina is at the early stages of a Search Fund emergence—similar to where countries like Spain or Brazil were a decade ago. Until recently, the model had virtually no presence in the local investment landscape. But with macroeconomic stabilization underway and a clear generational transition among SMEs, the conditions are now in place for real momentum.
The SME market remains large, fragmented, and undersupplied—offering 20,000+ businesses that fit the core Search Fund profile, in terms of revenue, profitability, and succession dynamics. To put that into perspective: Spain has roughly 1,000 SMEs per active searcher, while Argentina—at current scale—could support at least 20 traditional searchers with no overlap.
Given this opportunity, it is likely that one or two students from top MBA programs will return to Argentina each year to launch their own funds, bringing international experience and long-term conviction back to the local market. Combined with the increasing interest of family-owned businesses in exploring succession options, this sets the stage for steady ecosystem growth.
One key driver of that growth is the emergence of local institutional support. Ventus Capital—the first dedicated Search Fund investor based in Argentina—is doing an outstanding job, not only in backing searchers but also in working closely with local universities and investor groups to build awareness and credibility around the asset class. Their role is helping lay the foundation for a more educated, connected, and sustainable ecosystem.
Looking ahead five years, I expect Argentina to have a core group of 5 to 10 active, professional searchers, supported by a mix of global and local capital, increasingly familiar to founders, advisors, and intermediaries. As the first mover in this new wave, Netherwood is committed to setting a high standard—proving that the model can thrive even in frontier markets when built with discipline, transparency, and a long-term vision.
