Catalyst for Change
Sarona recognises its responsibility to act as a catalyst for change within developing markets by acting as a bridge between private capital and entrepreneurs and by encouraging fund managers and investee companies to improve their ESG performance.
A bridge to growth markets
Since 2010, Sarona has deployed nearly $180mm of capital to locally-based private equity funds, private debt funds and direct investments alongside national and international investors. Sarona’s assets under management have grown at the encouraging rate of 55% (CAGR) over the last three years, but the demand for growth capital currently is outstripping supply. The World Bank estimates that 70% of all micro, small and medium-size enterprises do not have access to formal credit facilities. The current credit gap is estimated at $1.2-2.6tn. Meeting this demand through responsible investment can have significant positive impact on the communities where capital is needed.
A leading player in the Blended Finance space
Sarona is playing a leading role by developing investment vehicles blending public money with private investments and changing the risk return profile for different groups of investors. In 2015, Sarona was showcased for its successful Blended Finance approach at the United Nation’s conference on Financing for Development in Addis Ababa, where countries reached a historic agreement to finance a new sustainable development agenda. During the event, the Canadian government and the World Economic Forum recognised Sarona’s thought leadership as they launched Convergence, a platform that allows private and public funders to blend their capital, creating more financially attractive, high-quality investment opportunities. The ultimate goal is to catalyse private capital into investments where investors would not otherwise go.