JMMB Group, through its subsidiary JMMB Securities, has launched a private equity investment vehicle to fund mid-sized companies in Jamaica and the rest of the Caribbean.
JMMB Securities Limited has already raised $1.5 billion in its first closing in September for the private equity company Vertex SME Holdings.
Vertex SME Holdings is predominantly funded by external investors desirous of gaining exposure to the private equity asset class, JMMB said.
JMMB Securities Limited has invested its own capital in Vertex, subscribing for approximately 10 per cent of the total offer size.
“There generally exists a number of debt and equity financing options for large companies and to some extent also early stage companies. However, given the scale and stage of development of mid-sized companies, they generally do not have ready access to well-structured growth funding. So a vehicle such as Vertex is particularly important in helping to bridge this gap,” said Kareem Tomlinson, General Manager, JMMB Securities Limited.
Vertex will invest between $150 million and $500 million each in a pool of as many as 10 businesses.
As subsequent investment opportunities arise, JMMB Securities will pursue more fundraising for Vertex, providing investors with above-average, risk-adjusted returns.
In addition to offering more growth funding opportunities for mid-sized businesses, the investment vehicle will enable JMMB to diversify its revenue stream.
JMMB Securities Limited, the investment manager for Vertex, said it would leverage the strengths and expertise of JMMB Group to help mid-sized businesses grow into larger entities.
JMMB Securities will utilise the group’s vast client network to ensure that at all times, Vertex has consistent access to high-quality investment opportunities.
Vertex will also appoint directors to the boards of each of the companies.
“Portfolio companies in which we invest will not only get access to financing, but access to best in class technical expertise across a wide range of expertise,” Tomlinson said.