Vertex SME Holdings Limited, a private equity vehicle managed by JMMB Securities Limited, is gearing up to raise another $1 billion to fund its pipeline of investment opportunities.

Private equity is a form of private investment in more established or mature companies with an aim to acquire a significant equity stake and enhance the value of the company. Vertex is a St Lucian international business company (IBC), which raised $1.502 billion in mid-2022 to invest in small and medium enterprises (SMEs) in Jamaica and across the region.

Vertex has fully deployed its capital into four portfolio companies with the average deal size around $300 million. Vertex took a minority stake in Guyana-based Corum Restaurant Group Inc. in June 2023 before taking a 25 per cent stake in ICR Holdings Limited in October 2023. ICR Holdings is the parent company of Island Car Rental (ICR) and Jamaica Rental Company Limited. Vertex subsequently acquired a 35 per cent stake in Erin Radiology Limited, parent company of diagnostic imaging firm Kris Radiology Services Limited. Vertex made its fourth investment in January in another Jamaican company.

With the private equity vehicle completing its capital deployment earlier than planned, it expects to return to the capital markets shortly to capitalise on its deal pipeline.

“The truth is that there is so much deal flow out there. We’re in the market looking for another $1 billion to invest in local and regional companies to grow them, expand and then return capital back to our shareholders,” said Jonathan Bair, corporate manager of private equity at JMMB Securities, in a recent interview.

The latest round of fund-raising is set to come at a time when Vertex should be receiving a dividend distribution from one of its portfolio companies. Corum sold its Pizza Hut franchise in Guyana to The Beharry Group on June 1. Corum operated ten Pizza Hut locations before the sale and had previously telegraphed plans to expand the P.F. Chang’s franchise through its subsidiary Caribbean Fusion Holdings Inc. These new P F Chang locations would be Guyana, Suriname, Jamaica, Barbados, and Cayman Islands.

Although Bair wouldn’t get into the size of Vertex, he noted that the first three portfolio companies are reporting record revenues. Vertex has board seats on the various portfolio companies and seeks to support these companies through guidance and assisting in raising new funds to expand. The Development Bank of Jamaica has one seat on Vertex’s board, JMMB Securities has three seats, and three board seats have been assigned to independent directors.

While Bair is grateful that Vertex was able to deploy funds earlier than the original timelines, he lamented the constraints that exist without the typical partnership structure that exists in other markets between the fund manager which is usually the general partner and the investors which are limited partners.

Prime Minister Dr Andrew Holness told attendees at the Jamaica Stock Exchange’s (JSE) regional investments and capital markets conference in January that additional legislation was being piloted to attract more funding to the financial sector. The Partnership General Act, Trusts Act and Trusts and Corporate Services Providers Act are already operational, but the Partnership Limited Act and Segregated Accounts Companies Act are awaiting relevant amendments or gazettement before going into force. The Limited Liability Company Act is currently being refined to meet global standards.

“We’ve really tried our best to mimic all the typical features that are present in the US funds, and we try to be as investor friendly as we can,” Bair added.

Private equity is an investment strategy that Proven Group Limited (formerly Proven Investments Limited) touted in its formative years as it exited its investment in Knutsford Express Services Limited in December 2015 and partially monetised its investment in Access Financial Services Limited in September 2019. It currently holds a 20.01 per cent stake in JMMB Group Limited which is listed as one of its private equity investments.

Sygnus Deneb Investments Limited has grown its assets under management from US$11.1 million to US$47.6 million over the last five years. Sygnus Deneb’s net asset value per share has also moved from US$0.10 in April 2020 to US$0.18 in April 2025. Sygnus Deneb took a 20 per cent stake in Platinum Brands, SA, which is a special purpose vehicle used to acquire the Panamanian KFC and Dairy Queen franchises in June 2024. Sygnus Deneb has also invested in Aruba, Wine and Dine, Chukka Caribbean Holdings Limited, CS&T Group Limited and Caribbean Maritime Investments since its launch in December 2019.

BAIR… we’re in the market looking for another $1 billion to invest in local and regional companies.