Sarona's investment strategy consists of building well diversified portfolios of private equity funds, managed by top quality teams based in our target Frontier and Emerging markets. We seek the stability provided by diversification combined with the potentially attractive financial returns generated by top quality, experienced professionals. We believe that local private equity managers, who are based close to their investible universe and their portfolio companies, who are intimately knowledgeable about their local business and political economy, have an advantage over a fund manager that is half a world away. Sarona believes that investing with such local managers is a better risk adjusted financial proposition for investors.
Geographical Focus: We generally focus on countries with GDP per capita below US$12,000 and above US$500. This includes a universe of approximately 80 countries.
Sector Focus: We seek opportunities in high impact sectors including information and communication technology, agricultural processing, water, education, health care, financial services, transportation & logistics, consumer goods companies focused on providing products and services to the growing lower middle class or Base of Pyramid (BOP) clients, light manufacturing with job creation and energy efficiency potential. We pay special attention to investments that serve, employ or are supplied by lower middle class or BOP clients. We do so because we aim to make the greatest amount of positive impact with the finite capital available
Investment Style Focus: We invest primarily in funds that invest in profitable, growth-stage companies with some exposure to late stage VC companies that already generate revenues but may be pre-profit. We generally do not invest in pure VC, in pure buy-outs, or pure restructuring funds.
Size Focus: We target relatively small funds who make investments in SMEs through a combination of capital and knowledge value addition
Structure of Investments: Most investments are made through shareholder positions or limited partnership interests in collective investment vehicles in order to provide broad diversification and risk mitigation.
Co-Investment and Secondary Investments: We have the experience and capability of sourcing and making secondary investments and co-investment which we intend to use to optimize portfolio construction