Sarona Frontier Markets Fund


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Sarona Frontier Markets Fund

  1. 1. Sarona Frontier Markets Fund 1 LP
  2. 2. Bringing meaning to your investments Take Advantage of Frontier Market Upside Invest in impact investing through a fund of SME funds focusing on SME equity in developing countries in clean tech, microfinance, agro-processing, health, tourism and telecom value chains Entrust a manager with a 56-year track record in SMEs in Frontier Markets and a history of exceeding performance
  3. 3. Introducing Sarona Frontier Markets Fund 1 LP <ul><li>The Frontier Market Upside </li></ul><ul><li>Our solution </li></ul><ul><li>Our track record </li></ul>
  4. 4. Frontier Market Upside GDP Growth Trend
  5. 5. Frontier Market Upside Stock Capitalization
  6. 6. Frontier Market Upside Small & Medium Enterprises – Sector Trend
  7. 7. Frontier Market Upside The Environmental Premium Innovest’s Carbon Beta Model (Global stocks): Returns for 57 months Top 50% vs. Bottom 50% All Sectors Annualized Alpha: 378 bps Source : With permission of Matthew Kiernan (2009) of Risk Metrics
  8. 8. <ul><li>Impact Investing: </li></ul><ul><ul><li>A new industry has developed </li></ul></ul><ul><ul><li>Achieving profit plus impact on social and environmental level </li></ul></ul><ul><li>The Economist predicts: </li></ul><ul><ul><li>this will be a new asset class of </li></ul></ul><ul><ul><li>$500bn in 5-10 years </li></ul></ul><ul><li>We’re at the forefront of this industry </li></ul>Frontier Market Upside Impact Investing
  9. 9. <ul><li>The Sarona Frontier Markets Fund is a Fund-of-Funds that will achieve </li></ul><ul><ul><li>Profit: For investors </li></ul></ul><ul><ul><li>People: Benefit for the poor </li></ul></ul><ul><ul><li>Planet: Earth-care for our grandchildren </li></ul></ul>Introducing Sarona Frontier Markets Fund 1 LP
  10. 10. Our value proposition to investors <ul><li>We select the best private investment managers in Frontier Markets around the world to achieve </li></ul><ul><li>Profit, People, Planet </li></ul><ul><li>And you can travel with us to visit the companies where your capital is invested </li></ul>
  11. 11. SMEs in Southern Africa Renewable energy project in India & Philippines SMEs in Mexico Microfinance Banks in developing countries Fund Structure
  12. 12. Fund benefits Strategy <ul><li>Fund of Funds: We select the best small private investment managers with a strong country or industry focus </li></ul><ul><ul><li>Diversification: We don’t invest in just one or two countries; we invest broadly, knowing that some countries will flourish more than others </li></ul></ul><ul><li>Micro, Small and Medium Enterprises: Our managers stay away from large cap companies. They look for growth in small and medium sized companies, including Microfinance Banks </li></ul><ul><ul><li>Profit, People, Planet: We invest in fund managers that aggressively target a triple bottom line </li></ul></ul>
  13. 13. Fund benefits Investor Experience <ul><li>Evergreen Offering: Sarona will allow investors in at the end of each calendar year </li></ul><ul><ul><li>Liquidity: Unlike most private investment funds, Sarona offers each investor an annual redemption opportunity after a three year hold period </li></ul></ul><ul><ul><li>Experience: We invite you to join us on due diligence or management trips to various countries. Don’t leave your money to others – see where your money goes! </li></ul></ul>
  14. 14. Fund benefits Results <ul><li>Frontier Market Upside: You may have missed the extra growth spurt of the past 46 years, but you don’t want to miss the future! </li></ul><ul><li>Returns: We target a net financial return to investors of 15% over the long run. Annual ROI for investors will start at 5% and grow from there. You’ll also know that your capital is benefiting people and improving the environment </li></ul>
  15. 15. <ul><li>Berkeley Energy Partners: </li></ul><ul><ul><li>Renewable energy in India, Philippines, based in UK and India </li></ul></ul><ul><li>Ariya Capital: </li></ul><ul><ul><li>Microfinance, Renewable Energy, Telecom in Southern Africa, based in UK and Botswana </li></ul></ul><ul><li>MicroVest Capital Management: </li></ul><ul><ul><li>Microfinance Banking, Global, based in Washington </li></ul></ul><ul><li>Ignia Fund: </li></ul><ul><ul><li>Housing, health, agro-processing SMEs based in Mexico </li></ul></ul><ul><li>Colombia Opportunities Fund: </li></ul><ul><ul><li>Tourism, agro-processing, ICT, clean tech SMEs based in Colombia </li></ul></ul><ul><li>Sorenson Housing Fund: </li></ul><ul><ul><li>Affordable Housing Projects in India, based in the US and in India </li></ul></ul>Pipeline 2009 and early 2010
  16. 16. <ul><li>Investing in Frontier Markets since 1953: </li></ul><ul><ul><li>First investment = Sarona Dairy in South America </li></ul></ul><ul><ul><li>Continued direct investment for 56 years </li></ul></ul><ul><li>Last 12 years, (co-)founded: </li></ul><ul><ul><li>Latin America Challenge Investment Fund </li></ul></ul><ul><ul><li>MEDA Investments Inc, Sarona Funds </li></ul></ul><ul><ul><li>MicroVest Funds </li></ul></ul>Why us? A track record in innovation and leadership
  17. 17. Why us? A track record in growth
  18. 18. Why us? A track record in social impact
  19. 19. Why us? A track record in performance <ul><li>Every Fund has achieved or exceeded targets </li></ul><ul><ul><li>Latin America Challenge Investment Fund, debt for Microfinance Banks, 1999-2008: >8% </li></ul></ul><ul><ul><li>Sarona Group: </li></ul></ul><ul><ul><ul><li>Sarona Risk Capital Fund (MEDA), high risk, early stage capital for experimental companies: >8% </li></ul></ul></ul><ul><ul><ul><li>Sarona Risk Capital Fund I LP: 5% </li></ul></ul></ul><ul><ul><li>MicroVest Group: </li></ul></ul><ul><ul><ul><li>MicroVest I LP: 80/20 debt/equity for Microfinance Banks, 2004-2008: 9% </li></ul></ul></ul><ul><ul><ul><li>Micro Access Trust CDO, 2006: 8% </li></ul></ul></ul>
  20. 20. Why us? A global network <ul><li>Our relationship with MEDA provides us with a network of over 3,000 business professionals in over 40 countries </li></ul><ul><li>Domestic: The MEDA business association provides access to 2,900 businesspeople in Canada, USA, Europe </li></ul><ul><ul><li>Self-selected group of entrepreneurs who know and care </li></ul></ul><ul><li>Global: The MEDA economic development institute provides access to over 250 business development professionals in over 40 countries </li></ul>
  21. 21. <ul><li>Assets under Management in funds and directly in companies: almost $200 million </li></ul><ul><li>56 year track record of success: </li></ul><ul><ul><li>In 2008, stock markets crashed </li></ul></ul><ul><ul><li>Our funds posted profits of 4% - 9% </li></ul></ul>Why us? Integrity to our investors
  22. 22. We need Leaders like you <ul><li>MEDA has invested $2.5 million as a founding investor </li></ul><ul><li>We seek Named Founding Investors: </li></ul><ul><li>8-10 investors at $1+ million </li></ul><ul><li>We seek investors: </li></ul><ul><li>min invest = $100,000 </li></ul>
  23. 23. Invitation to Join us as a Named Founding Investor <ul><li>Commit $1+ million as Founding Investor </li></ul><ul><li>Named as Founder in presentation material and PPM, in perpetuity </li></ul><ul><li>Invitation to Founder’s Council </li></ul><ul><li>Opportunity for partial ownership of GP </li></ul><ul><li>Invitation to travel with management team </li></ul>
  24. 24. Investor Term Sheet Terms and Conditions Terms and Conditions Description Investment offering Evergreen, annual closings on Dec 31 st Structure Limited Partnership Minimum investments $100,000 Availability Accredited investors Cash Call 100% at closing General Partner Manager Sarona Frontier General Partner Inc. Sarona Asset Management Inc. Annual ROE, net of fees Growing, from 5% in first 2-3 years, to 15% in years 5-8 Management Fee 1.45% pa on assets under management One-time up-front fee 1% on committed capital (except 2009) Income allocation First 6% to investor; thereafter 80% to investor, 20% to GP. Only paid to GP on investor exits Exits Full or partial redemption, after 3 year hold, subject to liquidity, on Dec 31 st of each year
  25. 25. 1.519.725.1633 [email_address]