Sarona is a private investment firm, deploying growth capital to expansion-stage companies in frontier and emerging markets. Through our primary strategy of investing in local funds, we seek to build companies that deliver high risk-adjusted returns while promoting positive ethical, social, and environmental values. We aim to carefully select only those local managers who are able to demonstrate that they add real strategic and operational value to the companies they invest in. With the right partners and strategy, growing highly successful and profitable companies can have a significant developmental impact. This is what drives us: building a diversified portfolio of funds and companies to deliver growth that matters.
Geographical focus: We generally focus on countries defined by the World Bank as low and middle income. These are countries with a GNI per capita below $13,000 and have a great need for development capital. According to HSBC Global Economics (2012), these markets are expected to grow almost three times faster than developed markets between 2009 and 2030.
Sectors: We seek opportunities in sectors that are set to benefit from the rapidly rising middle class within frontier and emerging markets. These sectors include: information and communication technology, education, healthcare, financial services, transportation and logistics, light manufacturing, and consumer goods.
Investment style: We believe that small to mid-market companies, in their expansion stage, represent one of the best risk-adjusted opportunities within these fast growing markets. We believe private equity provides the best access to these sectors.
Size: We target relatively small funds with managers that have demonstrated their ability to add operational value to the companies in which they invest.
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.
Diversification: A broad allocation to primary funds, secondary funds, and direct co-investments ensures diversification across a number of dimensions, including vintages.