Capria supports SGBs in emerging markets by investing in SBFIs (small business financial institutions) run by capable local investment managers who can find, vet, invest in, and support SGBs that deliver market rate returns to investors, and impact at scale.
To date, Capria has screened hundreds of proposals from investment teams raising and managing funds in Africa, the Middle East, and Latin America. These SBFIs are led by experienced, highly-capable, local investment teams that have deep regional networks. They use multiple investment instruments, including equity, quasi-equity, and debt to address the capital needs of growing SGBs in their respective markets, while providing paths to liquidity for investors.
In different ways, these SBFIs are addressing the missing middle finance gap overlooked by banks, private equity, development finance institutions, and angel and family office investors, all of whom tend to be focused on more mature, later stage businesses ready for much larger investment amounts. SBFIs typically invest in sectors in their local economies which have strong potential for growth through innovation and disruption including education, healthcare, housing, energy, financial services, logistics, food and agriculture. In turn, their SGBs portfolio companies will be serving fundamental consumer and business needs in their respective geographies and, in many cases, capture significant export opportunities.
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Know more about Capria’s thinking on Missing Middle