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Sarona/MEDA Global Investor Survey: Limited Partner Perspectives on Private Credit and Trade Finance in Frontier & Emerging Markets

Sarona/MEDA Global Investor Survey: Limited Partner Perspectives on Private Credit and Trade Finance in Frontier & Emerging MarketsIn spring 2019, Emerging Markets Development Partners (EMDP), in partnership with Sarona Asset Management and MEDA, undertook a survey of 46 individuals from 39 different firms. The survey aggregated investor views on private credit in Frontier and Emerging Markets and, ultimately, appetite for a proposed security offering. Key survey findings

  • LP interest in private credit in F&EM is high and growing: 74% of respondents expressed a moderate to high interest in investment allocations to private credit in Frontier and Emerging Markets.
  • 69% of respondents expressed a moderate to high interest in investment allocations to SME trade finance in Frontier and Emerging Markets.
  • 66% of respondents believe the weighting of fund portfolio exposure to frontier markets versus emerging markets should be determined by market factors and investment opportunities available.
  • 97% of respondents believe loss protection would influence their decision to invest in a trade finance vehicle.

Read our summary of the survey findings / Le rapport en francais.

Sarona acknowledges the collaborative support of Global Affairs Canada and Mennonite Economic Development Associates to undertake this research.

We also gratefully acknowledge the 46 survey respondents who contributed their invaluable insights to the survey. Thank you.

More to read on trade finance: Read our summary of our trade finance market demand research or visit MEDA’s page on their Trading Up program.

LP interest in private credit in F&EM is high and growing

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Q4 2022- Sarona Emerging Markets Monitor

The global economic outlook continues to remain challenging, particularly given the effects of higher inflation, as a result of supply side imbalances following covid-19 and subsequently the war in Ukraine. Energy and food prices remain major contributors to this surge with prospects of further rises in interest rates going into next year. With recessionary warning signs flashing, a flight to safety has strengthened the US dollar, with the index (DXY) peaking above 13% before softening to 4.6% YTD. Despite emerging markets facing higher import costs and stronger inflationary pressures as a result, including the prospects of depleted currency reserves, economic growth forecasts remain positive for this year, albeit at more moderated levels.

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