The surge of interest in investing in Venezuela following the removal of Nicolas Maduro is misguided, according to Elliot Dornbusch, chief executive officer of CV Advisors. Dornbusch believes that significant investment opportunities will not emerge until democracy and the rule of law are re-established in the country.
Dornbusch noted a flood of inquiries from investors eager to capitalise on the situation. “Everybody and their mother is calling their financial adviser, is calling their family office on ‘where do we invest? How do we take advantage of this? You’re from Venezuela, can you look for assets there?’” he said in an interview, expressing his disbelief at the rush.
In a letter to investors, Dornbusch argued that the US government’s plan to promote investments in Venezuela’s oil industry will not succeed in bringing prosperity to the country without prior political transition. He emphasised that a stable political environment is a prerequisite for meaningful economic progress. CV Advisors works with 135 families and institutions and manages $US15 billion ($22 billion) of assets. The firm provides wealth management and financial advisory services to high-net-worth individuals and families.
Dornbusch, who grew up in Venezuela and has a background in economics and the oil industry, founded CV Advisors in 2009 after leaving Venezuela in 2003. He previously ran a construction company before relocating to the US following Hugo Chavez’s overhaul of Petroleos de Venezuela SA.
