Private Debt – Sarona Trade Finance Fund
Sarona provides operating capital to SMEs through local intermediaries across the Global Growth Markets –Asia, Africa, Latin America and Emerging Europe. We seek to combine impact investing with sound financial returns and liquidity. Key elements of our investment strategy:
- Local partnership: Sarona does not invest from afar. We work with financial intermediaries in emerging markets, forging partnerships with the best of these firms to deliver operating capital to SMEs.
- 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.
- Alternative financial delivery mechanism: When a large off-taker promises to pay a small business in 120 days, that small business is either dead or seriously hampered for further growth. Banks lend against real assets. We provide operating capital against hard-to-secure assets such as leases, receivables and inventory.
- 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.
- Liquidity and yield: Long-term commitments to emerging markets are difficult. We offer investors the opportunity to join every month and exit every quarter.
- 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.
Sarona Trade Finance Fund LP, open-end, investing