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Sarona Frontier Markets Fund 3, LP

Cayman Islands

Last updated 12 May 2020, by Impactyield.

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Sarona Frontier Markets Fund 3 (SFMF3) has now begun fund raising targeting $300mm.

It follows the successful commitment of the $150mm raised by its predecessor. Like SFMF2, SFMF3 will be a diversified portfolio of funds and co-investments operating primarily in the high growth markets of Asia, Africa, Latin America and Emerging Europe.

The objective is to achieve attractive financial returns by supporting local PE teams who identify and help expand high-quality companies, employing progressive business strategies, and operating to the highest business, ethical, social and environmental standards.

Sarona aims to maximise the positive impact of its activities by creating high quality jobs and providing access to goods and services to communities where they had not been previously widely available. It also recognizes the need for strict Environmental, Social and Governance standards

SFMF3 will allocate minimum 60% to primary funds and up to 40% to purchasing stakes of funds in the secondary market and co-investing alongside GPs. Diversification will be achieved across continents, countries, sectors, managers, companies and vintages. Transaction size will depend upon the final size of the Fund, but we expect them to range between $10-30mm.

SFMF2 negotiated a financing facility from the U.S. government’s agency OPIC, and a first loss guarantee from the Canadian government. We aim to secure similar enhancements for this Fund.



Financial description

Sarona Frontier Markets Fund 3 (the Fund) expects to make investments (“Portfolio Investments”) in private equity funds focused on small and mid-market companies (SMEs) in Emerging and Frontier markets. Sarona’s target markets are generally defined as those countries with a 2014 GNI per capita below $13,000, as shown by the latest World Bank statistics. The Fund may also make direct co-investments in some of the companies held by the private equity funds and may acquire, on a secondary basis, interests in private equity funds from third parties.

8 years

of track record

2016

the year funded

300,000,000 USD

AUM

Interested in this fund?
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SDG goals

SDG targets

Expand and upgrade energy services for developing countries

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 8 years of track record

Target IRR: n.a.

Committed Capital: n.a.

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

Fund domicile:

Product status:

Style/Stage: ,

Inception year: 2016

Vintage year: n.a.

Target region: , ,

Target close date: n.a.

Product term: 12 years

Assets under management: 300,000,000 USD (US Dollar)

Investment size: Min: 0; Max: 0; Avg: 10,000,000

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 1%

Carried interest: 10%

Hurdle rate: 8%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: n.a.

Website:

Phone number: 15198837557.00

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Gerhard Pries

Managing Partner & CEO

Menno Derks

Partner & MD Fund Investments

Impact Performance

n.a.

Impact thesis

Sarona believes that business leaders who employ progressive business practices outperform their peers. These leaders seek ethical, social and environmental excellence. Such business excellence is believed to reduce risk, strengthen long-term sustainable value, and enhance exit possibilities. Sarona continually strives to ensure effective social and environmental management practices in all its activities, products and services, with a special focus on the following:
• Consistency with Sarona’s Environmental, Social and Governance (“ESG”) performance requirements agreed;
• Reporting on ESG and Impact targets;
• Annual review against ESG performance requirements;
• Ensuring investments in Private Equity Fund are not on the excluded list of activities;
• Meeting Sarona’s commitments of the United Nations’ PRI, its Principles for Investors in Inclusive Finance and as a Certified B Corporation;
• And, ensuring transparency in its investment activities to investors.

Impact Management

n.a.

Financial benchmark

Term Description:

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