Sarona closes second private equity fund of funds with $150mm
Kitchener, Canada & Amsterdam, the Netherlands – 12 December 2014
Sarona Asset Management held its final close for the Sarona Frontier Markets Fund 2 on 12 December 2014. The company raised a total of $150mm from a mixture of leading institutional investors, family offices and high-net-worth individuals.
The Sarona Frontier Markets Fund 2 targets superior risk-adjusted returns by investing – through locally-based private equity funds – in profitable, growth-stage companies across Africa, Asia and Latin America with a strong focus on environmental, social and governance improvements. More than half of the capital has already been committed. With 7 primary fund investments and 2 fund investments purchased on the secondary market, the Sarona fund is currently invested in 28 small to mid-cap companies in Colombia, Ecuador, Peru, Mexico, Indonesia, Malaysia, India, Turkey, Morocco, Tunisia and Algeria.
“Investing in this strategy enables us to further diversify our portfolio by gaining a broad exposure to SMEs in frontier and emerging markets set to benefit from the rapidly growing middle class consumption,” says Nick Greenwood, Pension Fund Manager at the Royal County of Berkshire Pension Fund.
Both US and Canadian government agencies are supporting the fund with a combination of equity capital, first loss guarantee and cost-effective leverage. Their support is aimed at improving the risk-return profile for other investors so as to encourage the flow of capital to responsible businesses within developing economies. Sarona’s experience of investing in sustainable businesses with progressive management is expected to deliver high risk-adjusted returns to its investors.
For more information, please don’t hesitate to contact:
Managing Partner and CEO
Sarona Asset Management