Tell us a bit about your background and how you came to found Sophia Capital.
I’m Argentine and studied entirely within the public education system here—primary, secondary, and university—graduating as an industrial engineer from the University of Buenos Aires. I’ve worked since I was young, and over the years I’ve gained experience in several major companies, including Citibank and the consulting firm Booz Allen Hamilton. Thanks to the latter, I was able to pursue an MBA at Columbia University and moved to New York, where I worked on Wall Street doing investment banking, covering Latin America and later focusing on Argentina.
In 2009, along with my colleague Federico Jarolavsky, I co-founded Sophia Capital, a private equity group investing in Argentina for more than 15 years. Despite the country’s economic volatility, we’ve done well by focusing primarily on the energy value chain. Today, we hold interests in six—soon to be seven—companies, including two that produce valves for the oil industry. In total, our portfolio includes around 20 companies employing roughly 1,000 people. We are considered a medium-sized group by Argentine standards.
How has the energy and gas sector evolved since your early investments, especially with the development of Vaca Muerta?
Our first transaction in 2009 was acquiring a tube coating company. At the time, no one was talking about Vaca Muerta yet. It turned out to be a valuable learning experience that also delivered a good return. That deal taught us something important—oil and gas resources are rarely found in the most stable regions of the world. Major oil companies are used to operating in volatile environments, sometimes even war zones. So, volatility and uncertainty are not disqualifiers in this sector.
That said, the oil industry is also highly conservative, requiring legal and structural protections to thrive. What’s unique about energy is that it's too essential to be left entirely to the public sector—it inherently requires private investment. That gave us the confidence to keep investing in Argentina despite its economic instability. When Vaca Muerta began to take shape in 2012–2013, we bought our valve companies and named the holding “Vaca Muerta Investments.” The industry matured quickly—today, Argentine oil companies operate at world-class standards in terms of cost and efficiency.
Despite those improvements, Argentina still presents barriers for foreign investment in energy. What are the main obstacles?
The success of oil companies in Argentina demonstrates the resilience of the industry. But the reality is, if Argentina had enjoyed economic and political stability, with consensus across political parties and legal predictability, Vaca Muerta would be five times its current size. Its current growth has happened despite the challenges. Looking ahead, the sector is poised to double its production within five years. That’s a massive feat—doubling hydrocarbon output in such a short time is rare and requires robust infrastructure investment.
To sustain and accelerate this momentum, the country needs a stable legal environment, reasonable taxes, capital mobility, and a significantly lower cost of capital. Argentina's country risk is currently around 8%, which is high compared to the 3–6% in neighbouring or peer emerging markets. This premium makes it expensive to borrow or attract investors, which in turn stifles expansion. Fixing this macroeconomic backdrop is essential for the next phase of growth.
What is Sophia Capital’s investment strategy in this climate, and how are you adapting to both local and international forces?
Our strategy is focused entirely on Argentina. We assume the country’s risk because we believe the potential returns justify it. Beyond personal ties to the country, we think Argentina offers unique opportunities for investors. We’re optimistic—Argentina is at a tipping point. If the country aligns itself with global norms, GDP could multiply two to four times in the next 10 to 20 years. This is not about inventing something new—it’s about catching up with the world.
From a capital markets perspective, Argentina is still drastically underdeveloped. For example, the market capitalisation of public companies is only 18% of GDP—compared to 100–200% in developed markets and 40–50% in regional peers. Deal volumes have been ten times lower than neighbouring countries. These numbers reflect how disconnected Argentina has been. But we’re starting to see structural reforms that suggest a real shift: fiscal balance, debt servicing, and a societal demand for normalcy. All these factors give us confidence that things are finally changing.
Given this shift, where are you placing your bets? Which sectors do you believe are best positioned?
We continue to reinvest in businesses that will benefit from the overall reduction in country risk and macroeconomic improvements, but we’re also focused on sectors with long-term structural advantages. Energy remains a core area for us—Argentina has the second and fourth largest oil and gas reserves in the world. But there’s also enormous potential in mining. Argentina exports less than a tenth of what Chile does, despite sharing the same Andean mountain range. That’s a clear opportunity.
Agriculture is another powerhouse. Argentina feeds 450 million people and is home to exceptional talent. We look at sectoral trends to guide our investments—areas that will benefit both from falling capital costs and from long-term global demand. Infrastructure and utilities, for instance, are like bonds: steady, regulated, and low-risk. In a country like Argentina, if the macro picture improves, the value of these businesses can rise dramatically. So, we’re targeting not just growth sectors, but capital-efficient ones as well.
How do you position Sophia Capital as a partner in this evolving landscape?
We aim to be the high-standard local partner for international investors who want exposure to Argentina but lack a physical presence here. Most of our deals include institutional shareholders of that profile. Strategically, we build teams with exceptional talent—people who are smarter than us and who bring in-depth sector knowledge. This allows us to manage investments with international best practices, which is critical for attracting serious capital.
Operationally, we try to stay agile and ready to take advantage of both types of investment windows—new growth opportunities and the rotation of ownership among established companies. Over the past few years, many multinationals and families delayed selling their businesses due to poor market conditions. Now that valuations are rising and confidence is returning, a backlog of opportunities is emerging. It's the best time I’ve ever seen to invest in Argentina—both for growth and value.
How do you view Argentina’s future, given the political uncertainty and history of economic reversals?
Some investors are waiting for 20 years of uninterrupted stability. That’s understandable, especially for sectors like automotive manufacturing. But energy and mining are different—they’re protected by their strategic importance. In oil and gas, for instance, you can’t afford populist shocks; production is so vital that any disruption would be unsustainable for the government. That’s why Vaca Muerta enjoys a kind of natural shield from political turbulence.
In fact, there are already three serious LNG export projects underway, and if Argentina can secure long-term offtake contracts, those projects will materialise. The economics of Vaca Muerta are very strong. The main challenge isn’t costs or margins—it’s infrastructure. Pipelines are being expanded, and by 2030, we’re looking at $25 billion in hydrocarbon exports. This will happen almost regardless of who’s in power, unless something catastrophic occurs.
What makes this time different? Why do you think change is more likely now than in past cycles?
The big difference is that this time, society is demanding fiscal responsibility—and politics is responding. It’s not just that the government achieved fiscal balance, but that society is rewarding it. The Argentine state cut 25% of its real spending and, surprisingly, the public accepted it. That’s unprecedented in our recent history. We’ve had fiscal balance only a handful of times in the past century.
Moreover, this is the first time a political outsider with a clear mandate for reform was elected. Whether Milei is the cause or the result of this shift is up for debate—but what’s clear is that voters asked for radical change. Politics, being a reflection of society, is adapting. That collective maturity—a learning process shared by both the public and politicians—is what gives me hope.
You could have built a career anywhere. Why did you choose to come back to Argentina?
It’s an emotional choice. I lived in New York and had a great career opportunity there. But when I was offered a chance to return to Argentina to lead a business, it felt like the perfect combination of personal and professional alignment. My wife’s family and mine are here. I have three siblings who left the country and never came back. I stayed. My daughters were born abroad, but I’d love for them to return someday too.
Argentina is home—not just geographically, but spiritually. My friends, my roots, everything that matters to me is here. For me, this isn’t just about business or investments. It’s about being part of something meaningful. That’s what keeps me here and fuels my optimism, even in the face of uncertainty.
