With a global financing gap of 5.2 trillion dollars for Micro, small and medium enterprises (MSMEs) it is evident that access to finance is limited (source). Yet, more than 70% of jobs worldwide are created by these firms, with even higher numbers for firms in emerging markets (source). To support closing this gap, impact fund managers help not only by providing funds but also in scaling impact across several industries. To launch an impact fund is no simple task. There are several hurdles, from capital deployment to due diligence and operational inefficiencies. Even the most experienced teams can struggle with these processes. Many impact fund managers struggle with the capacity for efficient fund operations in areas such as fund accounting, investor relations, impact management and measurement and investor reporting, all with the potential of leading to delays in reaching successful first close and ongoing operational efficiencies.
Who can guide the supporters of today’s innovative MSMEs? With Sarona Asset Management’s (SAM) 14+ years of managing investments in impact funds across the globe, Sarona has built a robust system and expertise to excel in accelerating growth in the success of a fund. Having interacted with 1000+ fund managers, the trends reveal that fund managers launching new products tend to underestimate the opportunity cost of not investing in a strong back office to reach operational efficiencies. This may lead to failing to develop and implement strategies that meet investors’ expectations, using non-tangible impact reporting metrics and prolonged initial closings. It is for these reasons that SAM Shared Services Inc. exists to support fund managers not only to launch faster but to leverage Sarona’s expertise in building the systems needed in the back- and middle office to scale effectively.
To achieve the goal of developing the needed support for fund managers, SAM’s Shared Services Inc. offers:
- Fund Accounting: Sarona’s fund accounting team provides guidance on quarterly and annual financials including P&L, balance sheets and partners’ capital balances, cash flow monitoring, company level performance, portfolio diversification charts, etc.
- Investor Relations: The highly experienced Sarona IR Team can support investor onboarding, KYC/AML and ongoing monitoring, managing of the fund administrator including investor portal access and managing of investor communication.
- Marketing: Branding is crucial for fund managers but is often overlooked. With support from our seasoned marketing team, fund managers will steer digital innovation in consistent branding and reports that communicate the exceptional value of the fund.
- Impact Measurement and Management (IMM): Determining the right metrics is critical to investors to monitor growth that creates real change. Developing the right impact questionnaire enhances strong annual reporting and assessing KPIS.
- Compliance/Legal: Compliance is a crucial determinant of the success of a fund. The slightest gap can have detrimental effects. Sarona has raised funds from varying jurisdictions across North America, Europe, Asia, and Africa. Leveraging this expertise, Sarona provides guidance in incorporation, registration and assessing the needed structures for strong Anti-Money Laundering checks and KYC for a robust and risk adverse approach.
Shared Services Unique Value
The shared services team brings incredible value with lower costs for developing the fund operations capabilities. By leveraging the shared services support as an extension of the fund manager’s team it offers experienced guidance, reducing time and financial and training commitments that would otherwise be incurred for hiring the professionals required A The Shared services team offers a customized approach based on the needs of the fund serving as a liaison between the fund administrator and the auditor working on the fund manager’s behalf. Furthermore, with access to Sarona’s preferred third-party service providers, the fund manager is a step ahead with having access to the best options available.
SAM’s Shared Services aims to provide a holistic approach that accelerates fund managers’ process of building sustainable systems before and after a fund’s launch. By creating this unique value, we are jointly contributing to an ecosystem that enhances fund manager capabilities to satisfy investor needs, bridge the funding gap for entrepreneurs, and create the needed impact for fostering sustainable environmental outcomes and communities.
Partner with Sarona Asset Management’s Shared Services and empower your impact fund to achieve success and drive the needed change.
