Spain and the United States - Real Instituto Elcano

100
SPAIN AND THE UNITED STATES
antagonising non-Hispanic communities but could require a certain level of
proficiency in Spanish, which would tend to favour Hispanic students.
One of the main needs of the Hispanic community is better access to
capital to start businesses. Spanish banks are well placed to do this as they are
very solvent and understand the Hispanic business culture. Moreover, the two
largest ones, Santander and BBVA, have invested heavily in acquiring banks in
Latin America, particularly in Mexico. BBVA has two small banks in the
United States: Valley Bank of California and Laredo National Bancshares
(LNB) of Texas (see Chapter 3). A significant factor behind the purchases of
these two banks was BBVA’s desire to build on its large market share of the
remittances business and begin to offer basic products to Hispanics.
In 2004, BBVA helped to launch the Palladium Equity Partners Fund
III, the largest private equity fund aimed at the Hispanic market. Other leading
investors are the California Public Employees’ Retirement System, New York
State and Local Retirement System and the Los Angeles Fire and Police
Pension Fund. The fund made its first acquisition in June 2005 when it
bought Taco Bueno, a Mexican fast food chain with 136 restaurants in
Texas, Oklahoma and Kansas. The investment opportunities identified by
Palladium are:
• Sectors which capture a higher percentage of Hispanic money, such as
consumption and entertainment.
• Sectors with a lower penetration within the Hispanic community, but in
which higher growth rates are expected, such as financial services.
• Companies which cover certain needs of Hispanics, who, for cultural or
economic reasons, remain left out, such as those related to the healthcare
and food sectors.
• Products traditionally considered Hispanic that are extending to American
society in general.
Another promising area for Spain is the business related to the growing
interest in the Spanish language in the United States (see Chapter 6). The
United States is the fifth-largest Spanish-speaking country in the world, after
Mexico, Colombia, Spain and Argentina (the 2000 census identified 28.1
million who spoke Spanish regularly, see Exhibit 5.7). Spanish is the most
commonly taught foreign language in American schools and universities,
providing opportunities for Spain’s publishers (see Chapter 4). There has also