Avance Investment Management co-founder on growing Latino buying power

welcome back to squawk box in honor of hispanic heritage month we are looking at the growing influence of latinos in the u.s economy our next guest has been invested in private market companies servicing the latinx community for two decades i want to welcome david perez avon says investment management co-founder and partner good morning to you good morning andrew thank you for having me on the show i i called you a private equity mogul on the way into this i don't know if you heard that part um but one of the things i i wanted to talk to you about specifically is you have focused on this market at a time when it has been remarkable in terms of its growth and yet the most of the private equity industry hasn't and i'm curious how you how you sort of see that dynamic playing out and whether you actually think that we're about to see a big shift well well thank you um first of all andrea i did hear you calling me a mogul and and i take a little bit of an issue with that maybe one in the making you know more to come here but um but i do uh but i do see um i think the the the growth of the hispanic market as one of the uh really important trends uh going through the country i started looking at this market um you know close to 20 years ago where hispanics were about 10 percent of the population today there are about 20 of the population and if we believe the numbers from the census we're getting to about 30 percent of the population in in 20 30 years so this is one of the greatest demographic trends that we're living through accounts for over 60 percent of population growth and and makes the u.s the only developed economy in the world whose population is growing which is crucially important for our country national security and the economy at large and i do think that private equity uh is starting to to notice this trend uh we're very early in that wave uh if you look at uh the latito market there are you know probably less than than a fraction of one percent of the capital is focused on it um the even the practitioners in our industry uh not not incredibly diverse right so i think we have ways to go but the impact that this group is having in the broad economy and the opportunity set uh that we see uh is something that i've been very focused on from my career with my partners and i think that you're seeing the the size of the latino companies grow and then attracting the attention of some of the key players in our industry well that's those guys what do you think the biggest opportunities are right now in terms of the you know taking the demographics that you've just talked about make the what where where are the investment opportunities in terms of taking that thesis in a practical direction right so i mean there are the there are a couple there are there are some there are some that you would call pure place where you're investing in companies that are focusing primarily or exclusively on on catering to that demographic and you're seeing a lot of uh companies do that very well in the food area financial services you know consume products and other aspects of the economy but what i what gets me and my partner sometimes more excited is by investing in a company that frankly has overlooked this trend and overlooked this demographic and had it hasn't incorporated it properly in their customer base or not leveraging this opportunity

Channel: CNBC Television

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Id: nSCNOs0hfdg

Length: 3min 27sec (207 seconds)

Published: Fri Sep 24 2021