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 underserved SMEs through local intermediaries across emerging markets – Asia, Africa, Latin America and Emerging Europe. We are committed to delivering strong financial returns and liquidity for our investors, while creating deep and lasting impact wherever we invest.
Fintech Lending – direct loans to responsible fintech lenders in emerging markets. Our loans are designed to reduce the financing gap for Micro/Small/Medium Enterprises, with a particular focus on empowering women as well as mid- and low-income borrowers.
- We extend secured, asset-backed loans to tech-enabled lending platforms in emerging markets
- We support the rising middle class and business owners, with access to innovative and more affordable financial products and services
- We use industry leading proprietary technology to analyse and monitor the underlying loan portfolios of our borrowers on a daily basis
- We mitigate downside risks – our loans have strong collateral packages, control over cash flows and first-loss coverage from the borrowers
- We target a minimum 30% of our loans to women-led MSMEs or women consumers
Trade Finance – trade finance to SMEs through local intermediaries in emerging markets. Through a mandate for the Government of Canada:
- We serve SMEs and smallholder farmers with catalytic capital to help them grow and operate efficiently;
- We provide working capital and inventory finance in the form of short-term commodity-based trade finance; and
- We provide capital to earlier stage local trade finance intermediaries.
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.