BAYBOSTON MANAGERS PUERTO RICO LLC

BayBoston Managers Puerto Rico LLC is the registered investment adviser entity established in San Juan, Puerto Rico, operating as the statutory management arm for BayBoston's founders and affiliated family offices who have relocated to the island. It shares the same principals and investment strategy as the Boston-based BayBoston Managers LP, a private equity firm focused on financial and business services companies. The dual structure supports tax-advantaged capital deployment under Act 60 while maintaining mainland deal execution.

Act 60 provides a 4% corporate tax rate on export-services income and a 0% capital gains rate for bona fide residents of Puerto Rico, conditions that the firm's principals meet. The San Juan entity is structured to originate and manage investments such that carried interest, management fees, and investment gains qualify for these reduced rates. This framework creates a structural tax advantage on investment returns compared to a standard US-based private equity firm.

The firm targets lower-middle-market companies in financial services, insurance distribution, specialty finance, and tech-enabled business services, typically deploying $20 million to $75 million per transaction. It uses a mix of control equity, significant minority stakes, and structured preferred positions. Historical engagements include a claims administration company and an insurance distribution platform, though the firm keeps its current portfolio non-public.

The investment adviser primarily manages capital for the firm's founders, affiliated family offices, and high-net-worth individuals who have established residency in Puerto Rico. There is no evidence of a broad institutional fundraising model, and the firm does not publicly disclose a fund structure or LP composition. It operates more like a captive private investment office with private equity discipline than a traditional blind-pool fund manager.

As a registered investment adviser in Puerto Rico, the entity is regulated by the Puerto Rico Office of the Commissioner of Financial Institutions. Puerto Rico is a US territory, so the firm remains subject to relevant federal securities laws, but its investment adviser registration is at the territorial level. The registered entity does not list SEC registration and appears to rely on the private fund adviser exemption given its likely sub-$150 million AUM and non-public client base.