Federico Garza-Bueron Explains How Private Equities Are Giving Back

Online, August 23, 2012 (Newswire.com) - Over the last few years, the private equity industry has received a lot of negative press. Many critics allege that Mitt Romney as well as his political foes are to thank for drawing such unwelcome public scrutiny into the once little-known industry. A recent article in The Huffington Post discusses how private equity may become the new approach to philanthropy. Financial professional Federico Garza-Bueron weighs in on the topic.

According to the article, Mitt Romney's former colleague and current campaign contributor, Bain Capital, hasn't helped the bad wrap the private equity industry has received. Newt Gingrich released a film about Romney's time at Bain, which also hasn't helped Romney or private equity.

While Americans don't seem to be jumping on board with the concept, emerging markets in Latin America, Eastern Europe, Africa and Asia are seeing the industry as a big win for all. Private equity offers a cheap form of financing that could be the ticket to success for economies badly in need of risk capital.

Federico Garza-Bueron, a New York financial professional, says he's not surprised to hear about private equities effect in these emerging markets. According to the article, firms have begun investing billions of dollars into these markets. "The poverty that exists in some of these countries is so large that donations and traditional forms of charity don't even begin to scratch the surface," commented Garza-Bueron. The article suggests that other firms are realizing this as well. Many non-profits are investing their resources into companies that have a positive affect on society as a whole.

Federico Garza-Bueron suggests that these types of investments mean significant improvements for the society involved. The article offered the example of investor NESst. "NESst invested in a Hungarian business called Fruit of Care that produces high quality gift and decorative products. Its entire workforce is comprised of adults with intellectual disabilities. In a country where less than ten percent of adults with such challenges can find work, Fruit of Care employs 150 such individuals."

Federico Garza-Bueron hopes that Americans learn something from their international counterparts. Garza-Bueron was impressed by what he saw from impact investors like NESst. "Giving back is the approach to take - there's no doubt about that. It's great to see these businesses thriving from it," Garza-Bueron commented.

ABOUT:

Federico Garza-Bueron is a New York financial professional and a long time philanthropist. He helps struggling immigrants get back their professional careers through the Upwardly Mobile project and is the event chairperson for the Columbia Business School Private Equity Committee. Besides donating his fortunes, he guides entrepreneurial ventures, restructures business and manages accounts for many wealthy clients. He holds a Bachelor's degree from Boston College, a Master's degree from Universidad Regiomontana in Monterrey, and an MBA from Columbia University. Currently, Federico Garza-Bueron serves as Event Co-Chair for the Private Equity Committee of Columbia Business School, as well as serving as a Board Member for the non-profit relief agency Friends In Deed.