2 Years to $40m: The Anatomy of a High-Velocity Roll-up

What do you mean by co-investments at the end there?

So private equity firms, and again, this is not maybe common for independent sponsors, but LPs sometimes ask to invest alongside you without paying the fees from your vehicle, or rather with you. So if you're buying a platform, they might get... 10-15% allocation directly into the target with all the benefits that it has of not paying fee and not paying carry on that.

It's a version of getting a piece of the GP economics effectively, right? Well, here they do.

No, no, it's called co-investment. And several of my friends in private equity, again, not even small funds, you have some LPs asking. They told me maybe now this is not

So general, but they ask for that, like investing directly. Let's say that you buy a platform, right? So you buy 90% in DLP.

It's at a general AP. And they might have, you know, reduced fees or whatever, but that's different. No, they ask to invest directly into the assets.

So the other 10% allocation is directly for them. And that obviously has a lot of advantage. You don't pay anything.

You don't pay carry. You don't pay fees. So that I never heard of anybody asking in Spain, right?

Luis, you'd mentioned to us that the timing of your raise, you had to be careful because you were stacking EBITDA so quickly with the velocity of your acquisitions that from the beginning of your raise to the end, the value of the enterprise that you were building, you thought had shifted, had grown. Say more about that and how somebody or a team pursuing a high velocity consolidation play should…

Yeah, that's a good point that you need to have your timeline and the capital needs plan out or align. As you mentioned, we were negotiating a capital increase. We had some people interested, but we wanted to get, or we knew we could get a bit more on that round.

We had the investors, you know, approved to just bring more capital providers, but we continue working. So as you get into holidays and, you know, in Europe, they tend to be... very sacred time passes.