Last week, I, along with Andreas Bodmeier, Ph.D., had the great pleasure of returning to my favorite island, #IslaDelEncanto, to spend time with fellow practitioners, LPs, and GPs. We would like to extend our gratitude to Joe Gladue and the Financial Analysts' Society of Puerto Rico for hosting us as their guest feature last Wednesday.
Key Takeaways from a Few Eventful Days in Puerto Rico:
Act 60's Broader Impact:
Contrary to some public misconceptions, Act 60 goes beyond well-known tax incentives to provide a comprehensive framework for a revived and diversified Puerto Rican economy. The recently published Incentives Report highlights the positive outcomes of Act No. 60-2019 and previous incentive acts. For more information, please see: https://lnkd.in/ewppQdhu
Growth of Direct SME Lenders:
Puerto Rico’s nascent direct SME lenders, private credit funds, and credit unions are poised to fill the void left by a declining local banking industry, which has shrunk from 13 players at its peak to just 4 names now.
Cannabis Industry Challenges:
A dispensary on every corner does not equate to a thriving cannabis industry. Over time, Puerto Rico may need to allow its market to 'right size' and potentially introduce a cap on licenses to maintain a healthy industry.
Embracing Industry 4.0:
Puerto Rico actively embraces Industry 4.0, spanning ICT and software development, Blockchain, AI, IoT, and Fintech. The island can serve as a critical, cost-efficient hub connecting the north and south.
Looking Forward:
We will be back soon with more to share from our specialty lending platform and actively engage with the local community. #PaLantePR
Thank you again for a fantastic visit and for the invaluable insights! + A special thanks to Alberto Pagan-Matos, CFA!