INVESTMENT STRATEGY

The Arroyo team has implemented its strategy since 2003 with a focus on downside protection and upside value creation achieved through its ability to grow the amount and term of the gross margins within its investment companies.

Investment Strategy

The Arroyo team has implemented its strategy since 2003 with a focus on downside protection and upside value creation achieved through its ability to grow the amount and term of the gross margins within its investment companies.

Arroyo achieves growth through a variety of business strategies based on its core areas of expertise:

  • Commodity supply agreements and related commodity markets
  • Ability to transact on a physical basis with both utility and corporate customers seeking security of supply via long term off-take agreements
  • In-depth knowledge of market design and regulation

This strategy provides Arroyo’s investment partners returns comprised of strong current income during the term of Arroyo’s ownership together with capital appreciation at the time of final realization.

The Team’s underwriting focus is on investments with a combination of the following characteristics: predictable cash flows; assets with reliable operating history; favorable operating characteristics and position relative to demand; and conservative capital structures. Arroyo implements a hands-on management style and seeks to make controlling or effectively-controlling investments independently without the use of operating partners.

Arroyo pursues investments in the U.S. and in the expected higher growth markets of Mexico and Chile.