Sarona Asset Management has picked up a C$15m commitment from the Canadian Department of Foreign Affairs for one of its funds.
The firm said the commitment would help promote private sector-led growth by stimulating investment in small to mid-market companies in frontier and emerging markets.
Sarona managing partner and CEO Gerhard Pries said, “We are honoured that the Canadian government chose to partner with us.
“Small and medium sized companies in the developing world are starved for capital and we’ve seen first-hand how our investments can unleash their enormous growth potential.
“Sarona’s mission is to build a safe bridge for institutional investors to access this growth – providing them with superior risk-adjusted returns – while supporting progressive companies that create jobs and serve the rapidly rising middle class in these markets.”
The Canadian Government’s investment will act as a first-loss guarantee on Sarona’s investments, with the profits to be shared with other investors.
Sarona partner and Europe managing director Vivina Berla added, “With this program, the Canadian Government is setting a sterling example of what is possible when governments team up with the private sector.
“We are starting to see similar initiatives spring up across Europe, signalling – we believe – a bright future for private-public collaboration and a new dawn for frontier and emerging markets.”
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