MICROCAPITAL BRIEF: Sarona Asset Management Inc, a Canadian Asset Manager, Raises $12m for Sarona Frontier Markets Fund I LP

Sarona Asset Management Inc (Sarona), a Canadian asset manager with over USD 200 million of assets under management in developing countries around the world, has successfully completed the closing of its Sarona Frontier Markets Fund I LP, raising USD 12 million in investor commitments in the initial three-month fundraising window. The new fund is a private equity fund of funds that intends to offer investors an aggressive strategy of financial, social and environmental targets in developing country markets. The fund will invest in micro-, small and medium-sized enterprise funds and debt instruments in developing countries and is targeting a return on equity of over 15 percent as the fund matures. Sarona brought together 35 private investors to launch this newest fund. 

Sarona President, Gerhard Pries, said, “this fund captures the significant developing country upside, and marries it with the human and environmental values that investors crave.” Serge LeVert-Chiasson, Sarona’s VP and Chief Investment Officer adds that, “our unique value proposition to investors is that, by creating a fund of funds, investors get diversification across countries, industries and the best managers in the sector.”

By: Christine Chang, Research Associate

About Sarona Asset Management:

Sarona Asset Management Inc is a Mennonite Economic Development Associates (MEDA) company based in Waterloo, Ontario. Sarona is an asset manager with experience in achieving triple bottom line targets: profit for its investors, economic benefit for developing countries and a focus on the environment. The organization is the founder and manager of a number of impact investment funds, including the Sarona and MicroVest groups of funds. Together, these funds have over USD 200 million of assets under management in developing countries around the world. 

About MEDA:

MEDA is a not-for-profit company dedicated to helping the lives of families who are living in poverty in the developing world through investment, primarily microfinance. MEDA is currently active in 44 countries and makes investments based on its network of agents and partners around the world. The organization’s history dates back to 1953 when a group of Mennonite businessmen invested in a dairy farm in Paraguay, an early investment in a socially-motivated small business.

Additional Resources:

Sarona Asset Management Press Release, February 12, 2010: http://02e69b3.netsolhost.com/news/news-releases/fund-manager-launches-first-impact-investment-fund-of-funds-for-developing-countries/

MicroCapital Universe: Sarona Asset Management Inc: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sarona+Asset+Management

MicroCapital Universe: MEDA: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mennonite+Economic+Development+Associates+%28MEDA%29

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