Clasecuador narrows its focus on industries that provide long-term value through strong free cash flow growth. The focus on liquid profits is paramount in economies like Ecuador where capital markets have no depth and thus liquidating equity investments is a cumbersome process.
Firms in consumer goods industries such as food and beverages, or in industries whose revenues are the result of daily cash inflows, are typically the ideal targets.
These ventures are the least affected by economic downturns, since the products or services they provide attend the most basic needs of the population.
In addition, firms in these industries, with a typically highly diversified consumer base, do not extend credit and the business generates liquid revenues, profits and thus free cash flow for the owners.
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