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Sarona Risk Capital Fund

Canada

Last updated 12 May 2020, by Impactyield.

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Fund geography

Emerging countries (256)

Sarona Risk Capital Fund (MEDA) is an advisory portfolio of investments owned by MEDA, managed and monitored by Sarona Asset Management. It provides early stage capital to promising companies in developing countries that have the ambition and ability to generate financial success and economic benefit to poor communities. By aligning with the long term strategic objectives of MEDA's operating departments, the investments also achieve MEDA's mission of creating business solutions to poverty.



Financial description

Yield Targets: Overall gross return, before management fees and expenses, of over 10% p.a.
1) Gross yields on loans of 4%-12%
2) Gains on equity investments at least 20%
Investment Limits:
1) Max 20% of their total committed capital in any one enterprise.
2) Max 20% of their total committed capital with any one fund manager or family of funds, with the exception of MicroVest and Sarona Frontier Markets Fund, which are each limited to not more than 40% of the total committed capital
3) Max 35% of their total committed capital in any one country.
Investment diversity. The Funds will seek diversity in their portfolio through a balanced exposure to debt and equity, various industries, Varying country.
Deal Size: US$250,000 up to US$2,500,000
Exits: 3-7 years from investment
Seek board role on all equity investments

31 years

of track record

1993

the year funded

16,000,000 USD

AUM

Interested in this fund?
Log in or create an account to request more information.

Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Universal access to safe and nutritious food

Promote policies to support job creation and growing enterprises

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Sarona Asset Management

Product track record: Fund has 31 years of track record

Target IRR: 9%

Committed Capital: 16,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: , , , , ,

Inception year: 1993

Vintage year: 1993

Target region:

Target close date: n.a.

Product term: Revolving portfolio

Assets under management: 16,000,000 USD (US Dollar)

Investment size: Min: 250,000; Max: 2,500,000; Avg: 1,000,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 31

Fund investments to date exited or repaid: 15

Management fee: 5%

Carried interest: 20%

Hurdle rate: 8%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: Mennonite Economic Development Associates

Limited Partner / Investor Type: n.a.

Contact

E-mail: n.a.

Website: http://www.saronafund.com

Phone number: 1.519.883.7557

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Serge LeVert-Chiasson

Partner & MD Operations

Impact Performance

n.a.

Impact thesis

The Fund will invest in companies that provide solid profit while optimizing the opportunity to create a better life for the bottom of the pyramid communities and a better planet for future generations
Profit: Companies that strive for solid financial return, business excellence and ethical excellence
People: Companies that strive for social excellence, including benefit to bottom of the pyramid communities; that create jobs, employ progressive HR policies, provide employee education and training, pay fairly, provide benefits and share profits; that engage suppliers and vendors from bottom of the pyramid communities; that provide beneficial goods and services to bottom of the pyramid communities; and that strive for community leadership, actively making the community a better place for all
Planet: Companies that strive for environmental excellence; that use cleaner energy sources; that protect the water, the land, the air and the bio-diversity; that use environmentally friendly suppliers and employ environmentally friendly operating system; and that strive for community leadership, taking an openly leading role in the industry and community

Impact Management

n.a.

Financial benchmark

Term Description:

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