Sygnus Capital Investments (SCI) says the Caribbean private credit industry is still in its infancy, with less than US$200 million in dedicated capital to the asset class.
In its new annual report, directors state that the objective of SCI is to promote the promising industry as a mainstream asset class in the Caribbean region.
Management stated that while the impact of the global COVID-19 pandemic on SCI’s business is an ongoing evaluation process, SCI remains well-positioned from a liquidity, funding profile and capital standpoint.
The company expects “to play a major role in financing the recovery and growth of Caribbean middle-market firms, while proactively managing the risks of its diversified portfolio of investments.”
SCI’s total investment income grew to US$4.50 million, a 39.8 per cent or US$1.28 million increase, for the financial year ended June 30.
This compared with US$3.22 million for the financial year ended June 30, 2019.
Net investment income, grew by 37.1 per cent or US$820,200 to US$3.03 million for the FY, versus US$2.21 million in FY2019.
Net profit attributable to shareholders was US$1.97 million, marginally below the US$2.05 million for 2019, by 3.8 per cent or US$77.8 thousand.
Company chairman Clement Wainwright Iton said the vision for SCI was to be a dedicated source of alternative financing for Caribbean middle-market businesses.
“Today, we are happy to report that SCI is not only a pioneer, but a leader in the Caribbean private credit market,” he stated.
He noted that since inception in the last three years, SCI has deployed more than US$100 million in private credit financing, diversified across more than 30 businesses, 11 industries and seven Caribbean territories.
The company’s portfolio of investments surpassed the US$50 million threshold for the first time in 2019, reaching US$53.6 million, driven by debt capital that was raised during the year.
Iton said that the company’s portfolio of private credit investments has thus far remained resilient in the face of the global COVID-19 pandemic.
Non-performing investments stood at 2.7 per cent- below the five per cent target threshold.
More importantly, Iton said, SCI continued to report zero realised credit losses on its private credit portfolio.