Canadian government commits to Sarona’s emerging markets PE fund

Sarona Asset Management, a Canadian private equity firm focused on investing in small and mid-market companies in frontier and emerging markets, has secured at $15 million fund commitment from the Canadian government. The government commitment will act as a first-loss guarantee on Sarona’s investments, with the profits being shared with other investors. One of the firm’s recent deals was its 2013 investment in Khyati Foods Ltd, a Mumbai, India-based company that processes organic cotton and soybeans. Sarona has its North American office in Kitchener, Ontario.


Canadian Government announces investment to support Sarona’s private equity program

23 April, 2014

Kitchener, Canada, and Amsterdam, the Netherlands

On 17 April, during the first High-Level Meeting of the Global Partnership for Effective Development Co-operation in Mexico, the Canadian Department of Foreign Affairs, Trade and Development announced a CAD$ 15 million investment in a fund managed by Sarona Asset Management (“Sarona”). The investment aims to promote private sector-led growth by stimulating investment in small to mid-market companies in frontier and emerging markets.

Sarona is a private equity firm, investing growth capital in companies and private equity funds in high-growth markets. The Canadian Government’s investment will act as a first-loss guarantee on Sarona’s investments and the profits thereof will be shared with other investors. These favourable conditions were agreed to encourage the flow of private capital, through Sarona, into developing markets.

“Canada delivers concrete development results through effective partnerships […] We are working closely with the private sector to create jobs, mobilize private investment, and unlock innovative solutions to development challenges,” explains the Honourable Christian Paradis, Canada’s Minister of International Development and La Francophonie.

“We are honoured that the Canadian government chose to partner with us,” explains Gerhard Pries, Managing Partner and CEO of Sarona, “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,” he continues, “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.”

“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,” concludes Vivina Berla, Partner and Managing Director Europe, Sarona.

For more information, please contact:

Gerhard Pries
Managing Partner and CEO
Sarona Asset Management
+1.519.883.7557 Vivina Berla
Senior Partner and MD Europe
Sarona Asset Management

About: the Global Partnership for Effective Development Co-operation

The Global Partnership for Effective Development Co-operation was established as a follow-up to the Fourth High-Level Forum on Aid Effectiveness held in Busan, Korea in 2011 to sustain political dialogue on issues related to the quality and effectiveness of development cooperation. The Busan Partnership agreement has been endorsed so far by Canada and 160 other countries, as well as 46 international organizations and a wide range of stakeholders.

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