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Click here to print Still Hot: Dale LeFebvre
BE finds out what our former Hot Listers have been up to
by Alexis McCombs
Former BE Hot Lister: Dale LeFebvre
Current Gig: Managing Partner, AIC Caribbean Private Equity Fund
Age: 36
Residence: Washington, D.C.; Jamaica
November 29, 2007--Jamaica is a tourist attraction known for its waterfall cliffs and regional cuisine but to LeFebvre, it's an island of economic opportunity. The former private equity investor tells BLACK ENTERPRISE why he shifted his focus from U.S. entities and is now investing in the Caribbean's telecommunications industry as it quickly takes flight.
BLACK ENTERPRISE: So why have you shifted your focus to the Caribbean?
Dale LeFebvre: Most people don't know that Jamaica's gross domestic product (GDP) is larger than several other markets including Israel and Singapore. However, in these locations there are already numerous [established] funds and they are saturated with baby boomers who've invested in real estate. The Caribbean is the next place to go. You've got countries such as the Dominican Republic with 9% GDP growth and there are very few institutional players there. Scotia Bank makes more profit there than anywhere else.
BE: What have you invested in and in which countries?
LeFebvre: I partnered with Michael Lee-Chin, one of the wealthiest [black businessmen], to invest $300 million into the Caribbean. We offer broadband, phone, and cable [services] and we own a wholesale piece of the fiber optic business. We got started and bought in before things went digital. We bought bandwidth contracts for 5-10 years. It's a good margin business for us. We sell this bandwidth to retailers in Trinidad, the Bahamas, and Grenada. [One of our customers is] Digisell, which is the equivalent to Comcast or Verizon [in the U.S.]. Customers pay $30 to $50 for cable or phone just like you pay here.
BE: So you're saying that the investment has been worth it.
LeFebvre: The bottom line of the business is $100 million in aggregate and growing significantly. It's excellent distressed investing because the purchase price multiples are less. In the U.S., the average business sells for eight times its earnings. In the Caribbean, it sells for four times its earnings. Also, you usually buy at auction but in the Caribbean, it's typically not that type of environment. People aren't competing.
BE: Why are you still hot?
LeFebvre: [I've brought together] my team which has grown from one to nine. Lee-Chin is from Jamaica and people of color have a competitive advantage there. Parish Capital [a black-owned company], is one of my funders. I've got an African American collaborate and it's great to see that we are getting to a point where [we as a race] can really help each other.
Copyright © 2007 Earl G. Graves, Ltd. All Rights Reserved.
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