JMMB Securities Limited (JMMBSL) through its Vertex private equity investment vehicle recently closed a deal through which it secured a minority stake in Corum Restaurant Group Inc — a quick service operator based in Guyana.

The recently closed deal saw JMMB deploying an undisclosed sum for a minority stake in what is now regarded as its first major private investment since the launch of Vertex SME Holdings.

The private equity vehicle launched last year was established to fund mid-sized companies having high growth potential, proven business models and sustainable competitive advantages operating across a wide range of industries in Jamaica and the rest of the Caribbean.

“Through this vehicle we are generally looking to take minority stakes, below 50 per cent, in companies that we believe have strong management teams and good growth prospects. Our level of investment, which I can’t share at this point, was a fairly substantial sum which will allow the company to pursue some of the growth objectives it has on the horizon,” said Kareem Tomlinson, general manager of JMMBSL, during an exclusive interview with the Jamaica Observer.

“We’ve looked at quite a few opportunities since Vertex has been up and running and this is one of the first ones that has satisfied the criteria that we’ve laid out for investment,” he added.

On the other hand, Clairmont Cummings, CEO of Corum, said he strongly believes it will help to significantly bolster his company’s future success.

“The investment supports the strategic positioning, consolidation, and expansion of Corum Group into the regional market, where we intend to become a dominant player in the quick service restaurant [QSR] and fast-casual restaurant space,” he is quoted as saying.

Corum, which owns and operates the Pizza Hut franchise in Guyana, currently operates some 11 locations across the oil-rich territory, with plans to further expand its footprint in the near future. The quick service operator, which also through its wholly-owned Caribbean Fusion Holdings recently acquired the rights to operate the PF Chang’s franchise in Guyana, will also enter markets such as Jamaica, Barbados, Suriname and the Cayman Islands. PF Chang, a US-based Asian cuisine restaurant, can be found in over 20 countries and across 300 locations globally.

“We anticipate the ultimate roll-out of PF Chang locally to be highly successful, considering the market’s response to similar international brands and the affinity for Asian cuisine,” Tomlinson said.

JMMB, a regional financial group, already run operations locally, in Trinidad and the Dominican Republic, will, through this latest deal, also gain entry into the budding Guyanese market, which has been highly sought after since its discovery of oil.

“This private equity vehicle will add value to the local space and its investors by supporting the growth of regional companies and creating the network to forge mutually beneficial partnerships in Guyana — which has the fastest-growing economy in the Western Hemisphere,” commented JMMB Group CEO Keith Duncan.

Tomlinson, further noting that JMMB chose to invest in Corum based on its very strong growth potential, said it is also looking to unlock the benefit from the wide range of opportunities which have been presenting themselves for the QSR operator.

As part of the deal, JMMBSL, which is to provide strategic support while maintaining its minority stake in the business, will share expertise through the appointment of its directors to Corum’s board.

Tomlinson, in further outlining Vertex’s growth plans, said the private equity vehicle will be moving bullishly to close more transactions from its robust pipeline which currently consists of over 20 deals spanning several industries.

“We believe the conditions in the market continue to be very ripe for private equity investment and we are seeing quite a number of opportunities that are relatively attractive, getting two to three new ones every week.

“We expect that in short order, there will be another investment that we can conclude locally which will be in an industry that employs a significant amount of persons in Kingston and Montego Bay,” he told the Caribbean Business Report further indicating the line-up of deals at various stages, with some closer to completion more than others.

Armed with sufficient funds, the CEO, describing the business as being “well capitalised”, said it is more than able to fund current and emerging opportunities. Vertex in its first tranche of fund-raising efforts had secured up to $1.5 billion in capital to fund deals.

“Given the robustness of our pipeline, in another few months, we may, however, need to raise more capital to fund growing opportunities,” he said.