Sygnus is launching its newest innovation in alternative finance – a US$100 million regional private equity fund – Sygnus Deneb – in partnership with Sagicor Investments.
This new private equity fund represents Sygnus’ third alternative investment company, as they continue to expand their reach in the non-traditional financing space, with dedicated funds for private equity, private credit and real estate.
Sygnus Deneb Investments’, strategy is to focus on deploying capital along three investment stages of the private equity spectrum: growth capital, buyout capital and capital to facilitate turnarounds. Sygnus Deneb will be targeting growth sectors across the region, such as energy, manufacturing, financial services, distribution and hospitality.
“The creation of this fund represents another evolution in our local market. We must continue the momentum to ensure that this period of economic positivity will benefit the majority.”– CEO of Sagicor Investments, Kevin Donaldson
In speaking to the new fund, Dr Ike Johnson, Executive Vice President with responsibility for Private Equity and Real Estate at Sygnus, said that, “Sygnus Deneb is a transformative financing vehicle that will provide equity capital to companies at the growth or mature stage of their business life cycle. Through Sygnus Deneb, businesses will be able to unlock capital to drive expansion at a much faster rate. Companies partnering with Sygnus will also benefit from our deep financial expertise and expansive regional network.”
Johnson added that, “Sygnus is currently exploring opportunities in Jamaica, Bahamas, Dominican Republic, Trinidad and Tobago, and the Dutch Caribbean, which he says represents a pipeline in excess of US$120 million.”
Anchored by Sagicor Investments, Sygnus Deneb shared that they are far advanced with its initial target raise of US$30 million, and has already successfully closed its first investment – the acquisition of a significant shareholding in Aruba Wine and Dine – a leading player in the Aruba hospitality industry.
Kevin Donaldson, CEO, Sagicor Investments lauded the new fund as an innovative financial solution that is beneficial to the region and its development, noting that “The creation of this fund represents another evolution in our local market. We must continue the momentum to ensure that this period of economic positivity will benefit the majority. To this end, giving businesses access to private equity is a crucial step in creating vibrant economies. Sagicor Investments sees this as another initiative through which we can support the region’s growth, as we seek to help individuals and corporate entities to create, grow and preserve their wealth.”
As Jamaica’s largest fund manager and co-manager of Sygnus Deneb, Sagicor Investments has been instrumental in partnering with Sygnus to develop this platform and has shared a three-year history with the company including taking Sygnus Credit Investments to market and listing on the Jamaica Stock Exchange in 2018. Together, the companies will manage Sygnus Deneb to achieve its overall objectives and create sustainable shareholder value.
“Sygnus is committed to deepening the accessibility to capital in the Caribbean by developing a robust alternative investments ecosystem through which businesses can access private credit, private equity and real estate financing. We believe our vision will create shareholder value and contribute to accelerating the velocity of economic growth across the region,” stated President and CEO of Sygnus, Berisford Grey.