Our Camino to Cintar Group

It’s hard to believe it’s been almost exactly a year since Camino Financial's merger with Fundation, and now we’re officially stepping into a new chapter. Building Camino Financial was a journey filled with many lessons.? Over the past year, we’ve reflected on how those lessons shaped our approach to building and scaling a successful business. One key realization has been that while you can't control everything, you can position yourself to ride market tailwinds.

This reflection led us on our camino to form Cintar Group.? We started with identifying macroeconomic tailwinds expected to last decades, and then narrowing our focus to areas where we are uniquely positioned to leverage our learnings to generate outsized returns. One massive opportunity stood out: the U.S.-Mexico financial services ecosystem.

Why the U.S.-Mexico Economy is a Goldmine for Financial Services

We estimate over $1.4 trillion in interdependent value between the United States and Mexico, representing one of the fastest regional economies in the world.? In the last two years, Mexico surpassed China to become the U.S.'s largest trading partner. Furthermore, the financial and insurance sectors alone account for nearly 23.2% of total foreign investments from the U.S. into Mexico, signaling that businesses offering innovative financial solutions are primed for success.

But it's not just trade and foreign-direct investment driving the U.S.-Mexico economy. There’s a massive Mexican-born immigrant population in the U.S., with over $500 billion in consumer spending and sending about $60 billion into Mexico annually. Furthermore, as more U.S.-born Latinos embrace their Mexican roots, they drive an increase in cross-border travel, remote work, and property investments in Mexico. This presents a strategic opening for companies that can bridge the financial gaps between the two countries.

Timing the Market and Capitalizing on Broader Trends

We see other relevant trends that converge with the U.S.-Mexico economy. One significant opportunity lies in the growing supply of small and medium-sized businesses (SMBs) expected to come up for sale as Baby Boomers retire. In the U.S., about 2.4 million businesses will change hands in the next decade, representing the largest transfer of ownership in history.? These businesses are typically too small for PE firms and not on the radar of venture capital, yet they can be purchased at reasonable multiples with access to low cost bank financing.??

At the same time, GenAI and modern cloud technologies are driving a transformational increase in productivity, making it more affordable to scale SMBs (and these costs are going down). Early adopters gain a multi-year advantage by leveraging AI to streamline operations and materially reduce costs.

Speed at which AI models surpassed human baselines 1995-2020, model performance*

The aforementioned trends are converging to create a rare opportunity. Pairing massive SMB ownership transfers with evolving AI technology provides a clear path for growth and value creation. Additionally, nearshoring high-performing teams powered by AI allows companies to tap into Mexico’s skilled workforce, enhancing cross-border operations and unlocking even greater value. By aligning with these shifts, Cintar Group positions itself to seize the future of SMB financial services growth and transformation across the U.S.-Mexican border.

Long-Term HoldCo Structure

At Cintar Group, we’ve embraced a Long Term Hold (LTH) and Horizontal HoldCo approach to building sustainable, long-lasting businesses. Instead of focusing on short-term exits, we’re all about playing the long game—often looking at 10 to 20-year horizons. This model lets us acquire multiple businesses in the financial services space, each operating independently but benefiting from shared resources like strategy, capital, and operational support.

The HoldCo model is an evolved version of the Search Fund model, which has delivered an impressive 35.1% IRR and 4.5x ROI in aggregate returns, kicking PE and VC asset class benchmarks in the a$$ (see LinkedIn post on the topic here).? By combining smart acquisitions, nearshore operations, and cutting-edge AI tools, we’re positioning our portfolio for long-term success—think a nextGen Berkshire Hathaway in the U.S.-Mexico economy.

Aggregate Search Fund IRR (2011-2024)

Driving Impact to $1 Billion & Beyond

At Cintar, we fundamentally believe the best way to scale our impact is by making sure everyone involved with us—especially our operating partners and co-investors—make a ton of money. We aren’t shy about this because we know that when financial success is achieved, it becomes the fuel for driving even greater impact. As such, our goal is to build a portfolio of businesses to realize $1 billion in value for our stakeholders, and then go up from there.??

To learn more about how we plan to execute the strategy outlined above, we will announce our first Cintar venture in a few days. You can also stay abreast on progress via our website or Company LinkedIn page.?

Want to nerd out about the $1 trillion U.S.-Mexico economy and its evolving financial ecosystem? Send Kenny or me a direct message and let’s chat.?

Juntos Adelante,

Sean & Kenny Salas

Managing Partners of Cintar Group