JMMB Securities Limited (JMMBSL), through its private equity solution Vertex SME Holdings, recently secured additional funding from the Development Bank of Jamaica (DBJ) that will help to strengthen access to financing for small and medium-sized enterprises (SMEs).

Vertex, which was launched as the first JMMB-managed private equity investment vehicle, had initially secured approximately $1.5 billion from its first tranche of fund-raising efforts and has since then been pushing to add new investors and raise additional funds to aggressively build-out its portfolio this year.

Through its latest partnership with the DBJ, a key government-led player in the private equity ecosystem, the private equity outfit is looking to add more investors that will help it to fund companies having high-growth potential across various industries locally and in the wider Caribbean.

DBJ, as the Government arm responsible for facilitating development financing and capacity building solutions locally, through the partnership has committed to invest a significant amount of funding in Vertex, following its selection from a call for proposals under the Social and Economic Recovery and Vaccine (SERVE) Programme.

“In forging this win-win partnership and by investing in the growth of businesses through Vertex, investors will efficiently gain exposure to the attractive private equity asset class that offers greater diversification from other traditional asset classes,” stated Kareem Tomlinson, general manager of JMMBSL.

“The offers have been structured to replicate the features and benefits typical of international private equity funds and provide a clear exit strategy for investors with a medium-term investment horizon. Investors will also benefit from the length and breadth of JMMB’s network, getting access to high quality investment opportunities,” Tomlinson added, while noting that approximately $150 million to $500 million will be invested in each of the portfolio companies selected.

According to Audrey Richards, private capital specialist at DBJ, her company was particularly elated about the public-private partnership with Vertex because of its proven commitment to SMEs and overall dedication to the development of the sector.

“In selecting fund managers for investment as part of the DBJ SERVE programme, Vertex demonstrated a solid team of experts, possessing a clear strategy and the requisite infrastructure needed to work closely with these businesses. The JMMB-managed investment company is one of the two private equity proposals selected by DBJ,” she stated.

Richards further said that as more private equity funding comes to the market, her expectation is to see the continued growth of the SME sector, especially as more small businesses expand their footprint and even take added steps to become listed on the stock exchange. She said that with Jamaica’s private equity funding now well below the international benchmark estimated at 1 per cent of gross domestic product (GDP), the addition of new entrants in the space can only auger well for the country’s economic growth prospects.

Touting the value of its private equity vehicle, JMMB’s Group Chief Executive Officer (CEO) Keith Duncan said that the financial conglomerate remains committed to partnering with the business community to ensure support for the sustainability of the sector falling among the country’s major economic contributors.

Bullish on the prospects for growth in what it considers to be a thriving industry, JMMBSL as the fund manager for Vertex further noted that it will also continue to hunt growth in the private equity market with plans to leverage more opportunities across the region, a move Duncan said was in keeping with the group’s strategic objective.

“JMMB is familiar with the needs of this sector and remains committed to moving Jamaica forward by fostering entrepreneurship through financing, capacity building and other support services. Our commitment to value-added service is evident in our partnership with FirstAngelsJA, which has seen us investing in a number of early stage companies as we also build out of our SME unit and SME resource centre; structure more innovative deals through our capital markets team and now offering private equity solutions through our first investment vehicle Vertex SME Holdings, managed by JMMBSL,” he stated.