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Canadian Government announces investment to support Sarona’s private equity program

On 17 April, during the first High-Level Meeting of the Global Partnership for Effective Development Co-operation in Mexico, the Canadian Department of Foreign Affairs, Trade and Development announced a CAD$ 15 million investment in a fund managed by Sarona Asset Management (“Sarona”). The investment aims to promote private sector-led growth by stimulating investment in small to mid-market companies in frontier and emerging markets.

Sarona is a private equity firm, investing growth capital in companies and private equity funds in high-growth markets. The Canadian Government’s investment will act as a first-loss guarantee on Sarona’s investments and the profits thereof will be shared with other investors. These favourable conditions were agreed to encourage the flow of private capital, through Sarona, into developing markets.

“Canada delivers concrete development results through effective partnerships […] We are working closely with the private sector to create jobs, mobilize private investment, and unlock innovative solutions to development challenges,” explains the Honourable Christian Paradis, Canada’s Minister of International Development and La Francophonie.

“We are honoured that the Canadian government chose to partner with us,” explains Gerhard Pries, Managing Partner and CEO of Sarona, “Small and medium sized companies in the developing world are starved for capital and we’ve seen first-hand how our investments can unleash their enormous growth potential.”

“Sarona’s mission,” he continues, “is to build a safe bridge for institutional investors to access this growth – providing them with superior risk-adjusted returns – while supporting progressive companies that create jobs and serve the rapidly rising middle class in these markets.”

“With this program, the Canadian Government is setting a sterling example of what is possible when governments team up with the private sector. We are starting to see similar initiatives spring up across Europe, signalling – we believe – a bright future for private-public collaboration and a new dawn for frontier and emerging markets,” concludes Vivina Berla, Partner and Managing Director Europe, Sarona.

About: the Global Partnership for Effective Development Co-operation

The Global Partnership for Effective Development Co-operation was established as a follow-up to the Fourth High-Level Forum on Aid Effectiveness held in Busan, Korea in 2011 to sustain political dialogue on issues related to the quality and effectiveness of development cooperation. The Busan Partnership agreement has been endorsed so far by Canada and 160 other countries, as well as 46 international organizations and a wide range of stakeholders.

Sarona Asset Management, a global pioneer in impact investing, is dedicated to generating competitive financial returns alongside positive social and environmental outcomes. Our firm’s investment strategies focuses on fostering sustainable development by partnering with local entrepreneurs operating high-growth businesses in emerging markets that generate attractive returns for our investors while contributing positively to their communities. Our goals include empowering women, protecting nature, creating and enhancing employment opportunities, improving governance, and building strong communities.

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