Investing from a distance is unnerving. Peru is so far away from UK, and Indonesia so far from USA. There’s no way you can keep an eye on your Brazilian communications company or your Kenyan bank. That’s where we come in.
We are here to lose sleep so that you don’t have to. As stewards of your capital, it is our job to keep watch, day and night. At the most basic level, we have to establish proper fiduciary and governance controls. But it goes further – we have to see to it that these companies and our local investment partners establish key performance indicators for financial, social and environmental success.
- Working with local investment leaders, who intimately know the local market and are steps away from their portfolio companies, allows our companies to dodge, pivot and flourish while others may flounder.
- Our focus on health and food, and especially on tech-enabled, consumer-focused companies has proven prescient as those companies thrived.
Private Equity – Sarona Global Growth Markets PE Funds
Sarona invests in mid-market companies in partnership with local private equity firms across the Global Growth Markets –Asia, Africa, Latin America and Emerging Europe. We are committed to delivering strong risk-adjusted financial returns and creating deep and lasting impact.
Key elements of our investment strategy
- Capturing growth: We invest in the growth-stage companies that serve middle class consumers across emerging markets. The rising middle class drives demand for quality goods and services at affordable prices –in education, healthcare, financial services and consumer goods. Access to these growth sectors is best be achieved through private investments.
- Active investing: Sarona endeavors to know all private equity firms in emerging markets, forging partnerships with the best of these firms to actively build profitable, mid-market companies.
- Delivering impact: Sarona works with local private equity partners to change thinking and implement impactful strategies in portfolio companies. Gender equality and climate action are key.
- Low correlation: Investments offer low correlation to developed market equities and are highly diversifying for most portfolios. Sector and geographic diversification hedges against idiosyncratic risks.
- Improved economics: A blend of direct investments and fund investments delivers highly diversified portfolios with a management fee structure that rivals that of traditional private equity funds.
- Investor partnerships: Some Sarona funds have secured partnerships with US DFC, which are designed to boost LP returns
Sarona Global Growth Markets PE Fund 1 LP, closed-end, fully invested
Sarona Global Growth Markets PE Fund 2 LP, closed-end, investing
Sarona provides operating capital to SMEs through local intermediaries across emerging markets – Asia, Africa, Latin America and Emerging Europe. We are committed to delivering strong risk-adjusted financial returns and liquidity, and creating deep and lasting impact.
Key elements of our investment strategy
- Trade finance to small businesses: Let the banks serve the large corporates. We serve the SMEs and those who represent small-holder farmers, providing catalytic capital to keep them growing and operating efficiently. We provide working capital against hard-to-secure assets such as inventory, receivables, leases.
- Attractive returns and liquidity: We recognize that, for many, long-term commitments to emerging markets are difficult. We offer investors the opportunity to enter and exit in manageable timeframes.
- Delivering impact: Sarona works with local financial intermediaries to change thinking and implement impactful strategies that strengthen companies. Gender equality and reducing poverty are key.
- Local partnership: We work with financial intermediaries in Emerging Markets, forging partnerships with the best of these firms to deliver operating capital to SMEs
- Investor partnerships: The Government of Canada has invested in our fund, with a long-term commitment to 2032, taking on the first risk of loss and sharing their baseline return with private investors.
Separately Managed Accounts
Sarona designs and manages bespoke investment accounts to meet the unique needs of institutional clients. Each such mandate builds on Sarona’s core expertise: investing in private companies in emerging markets, with a commitment to delivering strong financial returns and creating deep and lasting impact.
Our current SMA Mandates
MEDA Risk Capital Fund (MRCF), owned by MEDA: global emerging markets, with a focus on agri-business and market systems development.