The Emerging Mexican Market
While banks are plentiful in Mexico the availability of capital is not. As a result there is a lack of liquidity when it comes to working capital for growing companies. ODG Ventures was created to serve that need. We are not brokers. Our team reviews all opportunities and after reviewing business plans and cashflow analyses we determine which deals we will pursue. ODG Ventures invests the funds of its principles, investors, and financial institutions (ie. investment banks and hedge funds). The limited availability of capital in Mexico allows us to negotiate deals with very favorable terms. We manage all deals from start to finish. Our primary requirement in managing risk is control of an asset (typically real estate). Our capital is guaranteed by collateral that is worth more than three times the value of the loan. Deal sizes range from $250K to $1M. We only lend to businesses that we believe will be successful.
The lack of liquidity and financing in Mexico is also an advantage for us in our real estate division. The information flow is very limited as Mexico lacks much of the automation and databases that exist in the US. It is not uncommon for brokers to be unaware of prime listings carried by a competitor down the street. Not one of our real estate transactions have been publicly listed with realtors nor have they been posted in the electronic listings (i.e. MLS). As a result our deals are always priced significantly below the market.