Unlocking Value in Volatility: Diego Acevedo’s Playbook for Private Equity in Emerging Markets

Family-owned and locally rooted businesses frequently form the foundation of national economies, yet they can often struggle with scale, succession, and sustainability. Navigating this fragmented and often volatile landscape requires more than capital; it demands vision, adaptability, and deep local understanding.

Few embody these qualities like Diego Acevedo. As Partner and Head of North Latam at Southern Cross Group, he has spent over two decades turning economic uncertainty into opportunity. 

From leading the $100 million expansion of Supermercados Xtra in Panama to restructuring Chile’s Esmax into a high-return success story, Acevedo has built a reputation for transforming businesses and delivering value where others hesitate to tread. His playbook: a mix of strategic discipline, cultural fluency, and an unshakable belief in the potential of underappreciated markets.

“Emerging markets are not for the faint-hearted,” Acevedo says. “Currency swings, political instability, and regulatory hurdles can derail even the best-laid plans. But I’ve learned that volatility creates mispriced assets, and that’s where the real opportunities lie.” 

His ability to spot undervalued companies and execute complex transactions has made him a sought-after leader in private equity, managing over $1 billion in assets and steering Southern Cross’s strategy in Colombia and Mexico.

Acevedo’s journey began in Bogotá, Colombia, where his numerical aptitude led him to a degree in Industrial Engineering from Universidad de los Andes, followed by an MBA from Stanford Graduate School of Business. 

Early stints at Booz Allen Hamilton and Booz & Co. sharpened his analytical skills, but it was his entry into private equity in 2006 that defined his career. Joining Southern Cross in 2010, he opened their Bogotá office, recruiting a team of over ten investment professionals and sourcing hundreds of opportunities across the Andean region.

One of Acevedo’s standout achievements is the $100 million acquisition of Supermercados Xtra in Panama in 2016. The family-owned retailer, with just ten stores, was grappling with governance issues. Acevedo saw potential in its low-cost model and led a transformation that scaled the chain to 40 stores, professionalized management, and doubled the firm’s capital upon exit in 2021. 

“The key was aligning stakeholders,” he explains. “We implemented a governance structure that gave the family a voice but brought in independent managers to run the business. It wasn’t just about growth; it was about sustainability.”

Beyond his investment work, Diego Acevedo has played a pivotal role in supporting high-impact entrepreneurship as a long-standing mentor and judge within Endeavor, a global organization that supports scale-stage startups. 

Since 2010, he has participated in multiple phases of Endeavor’s rigorous selection process, including the Second Opinion Review (SOR), Local Selection Panels (LSP), and International Selection Panels (ISP). In these roles, he has assessed business models, growth potential, and financial viability for entrepreneurs from across Latin America and beyond.

Antonio Lequerica, Investment Principal at Coller Capital and former Associate at Southern Cross Group, worked with Diego and observed his growth and leadership firsthand.

“Mr. Acevedo has also contributed significantly to the entrepreneurial ecosystem through Endeavor’ He says: ‘His leadership in private equity, financial structuring, and corporate transformation will play a crucial role in fostering economic expansion and job creation in the U.S. market.”

The deal required navigating Panama’s highly competitive and fragmented retail landscape, where consumer behavior, pricing pressures, and informal market dynamics posed constant challenges. In addition to scaling operations, Acevedo had to manage complex cross-border logistics and transition from family executives to professional managers , factors that often deter less experienced investors.

“In emerging markets, you can’t just rely on financial models,” he notes. “You need to understand the local context—how families operate, how regulators think. That’s where deals are won or lost.” 

His cultural fluency, rooted in his Colombian heritage and fluency in Spanish, allowed him to build trust with the Xtra family shareholders, ensuring a smooth transition and a lasting legacy. Post-exit, Acevedo remains an independent director, a testament to the trust he earned.

Another defining deal was the $200 million acquisition of Esmax, a fuel retailer and midstream operator in Chile, from Petrobras. Acquired during a forced sale, the business was a complex mix of retail, real estate, and infrastructure assets. Acevedo’s team saw an opportunity to unlock value by separating these segments. 

“We recognized that the sum of the parts was worth more than the whole,” he recalls. “It was a bold move, but the numbers backed it up. By breaking the company into distinct business units, fuel retail, real estate, and infrastructure, we were able to highlight the unique value of each and attract specialized buyers.”

Ricardo Rodriguez, Founder and President of Southern Cross Group, has worked with Diego Acevedo since 2010, promoting him to Partner and observing his leadership across Latin America.

“In SPRB, Diego directly contributed to tripling EBITDA… In Estrella International Energy, he showed his resilience… This company has survived multiple crises and the Fund… has not been required to inject fresh capital given the successful restructuring.”

The fuel retail operation—featuring a network of prime service stations and convenience stores, was successfully sold to Saudi Aramco, marking the oil giant’s first major entry into the Latin American market. The transaction not only doubled the initial capital investment but also validated the strategic restructuring that separated the business units. 

This deal showcased Acevedo’s ability to execute in volatile conditions. Chile’s fuel market faced regulatory scrutiny and intense competition , yet his team’s rigorous due diligence and strategic restructuring turned a distressed asset into a windfall. 

“Volatility can be your friend if you’re disciplined,” Acevedo says. “In emerging markets, change is constant—whether it’s political shifts, currency swings, or regulatory surprises. You can’t control the turbulence, but you can prepare for it. That’s why I stress-test every assumption, build in buffers, and always have a Plan B.”

Acevedo’s playbook hinges on three pillars: meticulous analysis, stakeholder alignment, and operational discipline. His early consulting experience taught him to dive deep into data, a principle he applies to every deal. 

“In God we trust; for everything else, bring data,” he quips, echoing a mantra that guides his investment decisions. At Southern Cross, he’s known for discarding opportunities that lack clear upside, focusing only on those with limited downside and significant growth potential.

Alberto Calvo, Chief Executive Officer of Supermercados Xtra, worked closely with Diego Acevedo  during Diego’s tenure at Southern Cross Group, when they led the transformation of the company.

“Despite widespread economic uncertainty, he successfully navigated the company through the crisis,” he says: ‘led the implementation in two weeks of an e-commerce platform. He personally met with prospective investors and had the credibility to convince them to enter a new market with a +$400m investment.”

Stakeholder alignment is equally critical to Acevedo’s investment philosophy. He understands that financial engineering alone isn’t enough—true value creation requires buy-in from all parties involved. At Supermercados Xtra, he played a key role in resolving family participation, introducing governance structures that gave relatives a voice while transitioning day-to-day operations to a professional management team. Similarly, with Crezcamos, a $25 million microfinance lender in Colombia, Acevedo not only led the founder buyout but also recruited a seasoned VP-level leadership team to steer the company’s transformation into a regulated financial institution.

“Incentives drive everything,” he says. “You can have the best strategy in the world, but if the people executing it aren’t motivated in the right way, it falls apart. That’s why I spend so much time designing incentive structures that align the CEO, the broader leadership team, and the shareholders.”

Governance and operational discipline are central to Acevedo’s investment strategy. By implementing strong frameworks—as seen in Supermercados Xtra’s path to IPO—he ensures businesses remain sustainable well beyond his firm’s exit. His hands-on role on boards like Xtra, Esmax, and Crezcamos helps translate strategy into execution, driving long-term value through accountability and operational focus.

“Buying well is half the sale,” he asserts. “If you overpay or misjudge a key issue—whether it’s operational complexity, cultural dynamics, or hidden liabilities—you’re setting yourself up for a long, uphill battle. But if you get the entry point right—at the right valuation, with a clear understanding of the risks and upside—you give yourself a solid foundation.

This disciplined philosophy has fueled consistent returns, even through crises like the 2014 oil crash and the COVID-19 pandemic. Beyond deal-making, Acevedo is deeply committed to mentorship—having trained and guided over 20 investment professionals throughout his career. Many still turn to him for advice, a testament to his lasting influence in shaping the next generation of private equity leaders.. 

“I’ve seen a lot of scars in this business,” he reflects. “Years of working through economic swings, tough negotiations, and complex turnarounds have taught me lessons you can’t find in textbooks. Sharing that experience with younger talent helps them avoid the same pitfalls and recognize opportunities earlier.”

Mauricio Osorio Sánchez, President of Crezcamos S.A., began working with Diego Acevedo in 2017 when Southern Cross Group invested in the microfinance company.

“Despite the economic challenges from COVID-19, Mr. Acevedo’s leadership ensured that Crezcamos remained adaptable and resilient… ultimately resulting in a transaction to sell the business at a 1.8x multiple of invested capital.”

Now based in Miami, Acevedo is applying his emerging markets expertise to the U.S., targeting lower middle-market firms in sectors like landscaping. His ability to navigate volatility remains his edge. 

“Emerging markets taught me resilience,” he says. “You’re constantly navigating uncertainty—whether it’s a currency crash, political upheaval, or regulatory shifts. It forces you to stay level-headed, to manage risk without panic, and to focus on what truly matters.”

As global markets face new uncertainties, Acevedo’s playbook offers a masterclass in private equity. His ability to turn volatility into opportunity—through data-driven decisions, cultural savvy, and operational rigor—has cemented his reputation as a leader in emerging markets. 

“The greatest rewards come from the toughest challenges,” he concludes. “In private equity, it’s the complex, messy situations—family disputes, market downturns, operational inefficiencies—where real value is hiding. Most people shy away from those deals because they’re hard to fix. But if you have the patience, the discipline, and the right team, that’s where you find your edge.