How disciplined investing in emerging markets delivers performance and impact
During our recent webinar, Driving Returns Through Responsible Investments, the Sarona Asset Management team shared how a disciplined, private markets approach in emerging economies can generate strong financial returns while contributing to more resilient and inclusive communities.
The discussion brought together perspectives across investment, market strategy, and impact management, highlighting how performance and impact are integrated throughout the investment lifecycle.
A model built on local insight and long-term partnerships
A core element of Sarona’s approach is working with experienced, in-market fund managers who bring deep local knowledge and access to high-quality opportunities.
With relationships built over many years, this network enables consistent deal flow and informed decision-making in complex and fast-evolving markets. By focusing on mid-market, growth-stage companies serving the rising middle class, Sarona targets businesses that are both commercially viable and essential to everyday life, from healthcare and financial services to clean energy and logistics.
Managing risk through discipline and diversification
Investing in emerging markets requires a deliberate and structured approach to risk management.
Sarona combines rigorous manager selection with diversification across geographies, sectors, and vintages. The strategy also prioritizes visibility into underlying investments by focusing on later-stage opportunities, secondaries, and co-investments, helping reduce blind pool risk and shorten holding periods.
This disciplined approach has supported strong performance, with recent fund results exceeding top quartile benchmarks across key metrics such as IRR, TVPI, and DPI.
Integrating impact to strengthen outcomes
Measuring and Managing Impact at Sarona
Sarona integrates impact across the investment lifecycle
Due-Diligence
- Pre-Investment Screening
- ESGI Scoring
- Impact Assessment
- Risk Assessment
Impact Management
- Quarterly Reviews
- Annual Data Collection
- Annual Benchmarking
- Impact Case Studies
- Responsible Exit Commitments
Technical Assistance
- ESGI Capacity Building for funds and companies
- Business Support for companies
- Good-governance practices
- Gender and climate action integration
At Sarona, impact is embedded throughout the investment process, from due diligence to exit.
The team applies structured frameworks aligned with global standards, supported by proprietary tools to assess ESG, gender, and climate factors. Active ownership, ongoing monitoring, and technical assistance help strengthen governance, improve operations, and unlock value across portfolio companies.
Most importantly, these practices align with positive social and environmental outcomes while also contributing to stronger, more resilient businesses. Companies with robust governance, greater gender diversity, and sound climate practices are often better positioned to manage risk, access capital, and achieve successful exits.
Real-world impact at scale
Across the portfolio, this approach translates into tangible outcomes.
From financing access for underbanked populations in Southeast Asia, to scaling renewable energy and electric mobility solutions in India, Sarona’s investments are designed to address real market gaps while generating returns.
The impact can be immediate, such as access to financial services, or long-term, such as enabling clean energy transitions or improving agricultural productivity.
Key takeaways
- Strong performance in emerging markets is driven by local partnerships, disciplined investing, and active risk management
- Diversification and structured investment strategies help reduce volatility and improve visibility into outcomes
- Investors can play a direct role by allocating capital to strategies that integrate impact, helping scale businesses that deliver both financial returns and measurable social and environmental outcomes
Watch the full webinar
If you missed the session or would like to revisit the discussion, you can watch the full webinar below (or on Vimeo).
If you’re interested in learning more about our approach or continuing the conversation, we’d welcome the opportunity to connect at ir@saronafund.com.
