Over the ensuing decades, Deltec forged its reputation as a pioneer in emerging market direct investment, investment banking and wealth management with the foundation of Deltec Bank and Trust in Nassau, Bahamas in 1959.
Deltec, led by Dauphinot, began to engage friends and prominent financiers to co-participate in deals across Latin America, built out of an "Investor Club" or "Investor Round Table" structure that led Deltec to being seen as being one of the first formalised venture capital platforms in the world. This gave ultra high net worth individuals a unique platform to source and participate in deals and led to the growth of a one of a kind, boutique, transparent client-oriented private banking arm where all shareholders were major clients, ensuring that the interests of the client and the shareholders were, by default, perfectly aligned.
In Deltec, Dauphinot built a lasting legacy of premier private banking, co-investment and fund management. The spirit of pioneering thinking, innovation and creative approaches to financial markets that Dauphinot championed remains the bedrock of Isola Capital's principles today. Through its multi-family office structure and select group of Investor Round Table members, Isola Capital continues to carry the tradition of sourcing, structuring, investing and managing proprietary investments.
Below is a brief time line of Isola Capital's history:
Deltec is incorporated in May 1946, initially only as a holding company. The name “Deltec” is coined by the Brazilian lawyer to reflect the names of its three founding members Dauphinot, Elrick and Littlejohn, the three “tecnicos” (literally translated as “technicians”).
Whilst awaiting the granting of a banking license, Deltec operates as a trading firm, selling everything from “pots, and pans to glassware, Old Crow Whisky and Crosley cars”.
Deltec is Founded
Deltec’s founder Clarence Dauphinot, backed by Al Gordon, and two associates move to Brazil1949
American and Foreign Power Corporation mandates Deltec with the sale of a US$1.5 million common stock issue for Cia. Brasileira de Energia Electrica in Brazil
Latin American Growth
After the successful rights sale of Cia. Brasileira de Energia Electrica, in which the Deltec team sells securities door-to-door traveling across the countryside in 4x4 Jeeps in what proves to be one of the first successful attempts at wide-spread securities sales in the country, Deltec consolidates its position as a leader in Latin American investment banking and direct investment, underwriting 35 issuances between 1953 and 1959 in the region.
First “Investor Club” Deal
Deltec invests in the setup of a chenile manufacturing facility in Brazil. Deltec along with its co-investors provide the seed capital and operational backing for this venture and enjoy “huge success”, later selling their interest in the company to Listas Telefonicas.1959
Deltec Bank and Trust, Bahamas
Deltec is granted its Banking license in 1959 and its Trust license in 1961 in Nassau, Bahamas
Investor Club Grows
Deltec Bank and Trust in the Bahamas serves to formalise the “Investor Club” that Deltec has established, bringing together prominent financiers and entrepreneurs from across the globe and providing a platform to originate, finance and execute direct investment opportunities in Latin America and abroad. This is widely noted as one of the first recorded formalised venture capital platforms globally.
By the 1980s the Deltec "Investor Club" has grown to include more than 25 prominent and actively involved investors, both individual and institutional spanning Latin America, North America and Europe.
Deltec Latin American Fund
The Deltec Latin American (Debt) Fund S.A. is launched in 1989 and manages US$500 million in assets under management at its peak
Launch of Fund Management Platform
Deltec’s “Investor Club” members participate and co-invest in an issuance of Venezuelan government debt which generates handsome returns under the Brady Scheme of the late 1980s. This sets the foundations for the launch of the Deltec Latin American (Debt) Fund S.A. which becomes one of the top performing fixed income funds globally during the 1990’s, returning 742% between 1989 and 1999 net of fees to investors.
By 1999, Deltec has a total of US$1.2 billion of assets under management and is managing a suite of dedicated funds including the Deltec Latin American (Debt) Fund S.A., the Deltec Emerging Market Income Fund L.P. and the Deltec Forum Fund, L.P.
Hedge Fund Investment
Following its merger with Atlas Capital Group, an institutional alternative investment manager with over US$4.8 billion of assets under management, Deltec Bank and Trust continues to operate as a standalone entity and successfully expands its core business activities whilst centering its investment activity and expertise on hedge fund manager selection and investment. Deltec Asset Management is spun off.
Merger with Atlas Capital Group
Deltec is merged with Atlas Capital Group
A Return to its Roots
Following the sale of Atlas Capital in 2008, the shareholders of Deltec complete a management buy back of the Deltec Bank and Trust in the Bahamas and redirects its focus to capturing innovative and proprietary investment opportunities.
With focus shifting once more to direct investment and co-investment opportunities in emerging markets, the investment management function for Deltec is relocated from London to Hong Kong with the founding of Deltec Capital Limited. The focus is to complement the framework of investment and fund management expertise built up over the preceding decades, and to seek and manage new investment opportunities. In addition the exclusive wealth management capabilities, including trust and foundation services of Deltec Bank and Trust can be marketed.
Deltec Capital Group Limited
Atlas Capital is sold and Deltec retains its multi-family office structure. Deltec Capital Limited, a wholly owned subsidiary of Deltec Capital Group Limited, is founded in Hong Kong.
In 2013, Deltec Capital Group expands its shareholding to include select European and Asian family offices to broaden and deepen its investment and asset management capabilities. The focus is back to the core roots of the Investor Round Table for direct investments in growth capital opportunities with like-minded families around the world.
Isola Capital Group
In 2014, certain European and Asian family offices become direct shareholders into the Deltec Capital Group platform to formalize their commitment to the multi-family office structure and pool resources to enhance the investment capabilities of the platform. The group is rebranded under the umbrella of Isola Capital Group.