Monica Mantilla: uniting the Americas

Latino Leaders: The National Magazine of the Successful American Latino, August-Sept, 2003 by Jimmie Briggs

If Monika Mantilla succeeds, the 21st Century could see the realization of a dream held by her and many other Latin business professionals, a free-flowing market of trade and investment throughout the Americas, North and South. The New York-based Colombian has spent the majority of her professional life working toward the fulfillment of this vision. A resident of the United States since receiving her MBA from Columbia University in the late 80s, she's consciously strived to maintain her Latin ties.

"When I was living in Colombia, most of my business was with the United States, and now that I am [here] I have lots of contact points in Latin America, she says while sitting in a conference room overlooking Rockefeller Center. "This dream of the Americas as a whole is something that's yet to be achieved because the political and economic dynamics between north and south need to be rewritten."

The most encouraging catalyst may be the ascendance of Hispanic Americans residing in the United States. According to US Census Bureau statistics, Hispanics now comprise the largest ethnic minority in the country, and Mantilla sees this as a turning point for creating a stable investment flow to South America.

"Foreign-directed investment used to be the number one source of capital flow from North America to Latin America," observes Mantilla. "Now it's actually remittances from the US to the south. I think that from an economic perspective this will yield a new entrepreneurial class that has an understanding of the Americas and feels comfortable doing business in Argentina, Mexico, Canada, and the United States. In the past only multinationals or billion dollar companies could achieve the American dream, but thanks to technology and an increased awareness here of how important Latin America is, the Americas concept is happening for the first time."

Economic trends do seem to favor Mantilla's optimism, with the top Hispanic-owned businesses in the US producing more than $400 million in annual revenue. The Hispanic consumer market is the only demographic group expanding significantly, too. In the corporate boardroom, the percentage of Hispanics holding seats in Fortune 1000 companies has also increased yearly by ten percent since 1993, according to the Washington-based Hispanic Association of Corporate Responsibility, with whom Mantilla is affiliated.

After a decade of consulting, she became involved with a venture capital firm called Latin Rim in the late 90s. It was her first experience with a private equity fund, and the goal of the group was to promote and facilitate investment between Spain, the United States, and Latin America. Ultimately, the fund's focus narrowed to the Spanish market, but it was an important educational opportunity for Mantilla.

"Latin America is a young continent and economic instability will continue to be there," observes Mantilla. "The development of capital markets will not happen as fast as we hope, but there are market drivers such as people and natural resources.

Mantilla works as co-chair of the New American Alliance's capital committee in helping to increase the number of Latino brokerage firms, create entrepreneurial links for Latino businesspeople, and encourage young Hispanic Americans to pursue careers in professional financial services.

"If you look at it from a private equity standpoint, in the past there were buckets of money to be invested in Latin America, or only in the United States."

"Now we're seeing the trend of capital being allocated for businesses that have a component or some raw materials in Latin America and remain US-based.

It is that insight into countries' economies, which combined with Mantilla's leadership, are helping her play a part in financially uniting the Americas.

Monica Mantilla Co-founder of The Discovery Group LLC, and Co-chair of the New American Alliance's Capital Committee