Investment Strategies

Southwest Harvard Group (SHG) invests in early stage companies in industries and markets that leverage the firm's expertise and resources. Our partners are focused on two strategic investment platforms:

I. Minority Business Enterprises (MBE's)

SHG invests in minority suppliers and connects them with corporate buyers.


As the demographic face of North America continues to change, minorities and the Domestic Emerging Markets will continue to grow at a rate of almost 10 times the general market. This growth will be fueled as the minority population increases from 28% of the population to 50% over the next 40 years. In spite of these growth trends, the amount of corporate contracts awarded to MBE's is less than 5%. Corporate America is intensely focused on Supplier Diversity as a way to include MBE's in their supply chain. Supplier diversity allows Corporate America a mechanism to balance their supplier base to "reflect" their customer base.


SHG brings more than 15 years of experience in the Minority Business Enterprise market and has invested in more than 10 MBE owned and operated businesses in the United States. SHG has invested human and financial capital in the following industries: manufacturing, construction, real estate, retail, technology, healthcare and financial services (see portfolio highlights). In most cases, the portfolio MBE's obtained supply contracts with either Fortune 500 Companies or Federal Government agencies.

II. Products & Services Aimed at the Hispanic Market

SHG Co-invests with Corporations to Expand their Products or Services to the Hispanic Market


The U.S. Hispanic population of approximately 39 million comprises about 13.4% of the U.S. population and is the largest and fastest growing ethnic market in the United States. U.S. Hispanics accounted for 40% of the U.S. population growth between 1990 and 2002. In 2003, the U.S. Hispanic purchasing power was $653 billion and is estimated to grow to over $1billion by 2007, placing it among the top ten economies of the world and spurring parallel growth in the number of companies providing goods and services to this market (the "U.S. Hispanic Domestic Emerging Market").

The U.S. Hispanic Domestic Emerging Market -- Major Trends:

SHG is positioned to take advantage of three important trends, among others.

  1. The high growth rate in the population and purchasing power of the U.S. Hispanic population.
    • 52% of all immigrants to the United States between 1990 and 2000 were from Latin America.
    • Hispanic purchasing power is growing at an annual rate that is nearly double that of non-Latinos.
    • High growth in U.S. Hispanic population and personal disposable income has an exponential effect on dollars spent on products and services provided by companies that serve the U.S. Hispanic Domestic Emerging Market.
  2. The continual dominance and similarity of the Spanish culture and language among the U.S. Hispanic population
    • Language is a powerful identification tool for Hispanics in the U.S.
    • 69% of the U.S. Hispanic population say they are more Hispanic than American.
    • Hispanics also tend to live in high density areas making it easier to target them.
  3. The growing interest of U.S. companies to reach the Latino consumer as evidenced by important Spanish-language marketing and new product initiatives targeting the Latino consumer by major firms in key industry sectors.


As one of the most active high-growth Hispanic market investors, SHG helps Corporations and entrepreneurs leverage the burgeoning Hispanic market throughout the USA. SHG has routinely partnered with rapidly growing firms and major corporations to provide services to Corporations such as BDO Seidman, FiServ Corporation, American Savings Bank and Cendant Corporation. Past investments include Southwest Harvard Group Asset Management, Southwest Harvard Group Financial Services and Trinity Financial Services. Additionally, one of our partners managed the successful $55 million IPO of the Hispanic focused Internet portal