30 Jan

Sarona Invests in EFA Crescent Structured Trade Finance Fund

EFA Group is pleased to announce that Sarona, a Toronto-based private equity and private debt impact fund, has invested in the EFA Crescent Structured Trade Finance Fund (“the Crescent Fund” or “the Fund”). The Crescent Fund provides short-term, senior loans secured by liquid inventories, receivables and cash to Turkish manufacturing SMEs, capitalizing on the acute gap in financing available to these firms. Building on EFA Group’s decade long track record of direct-lending credit expertise, the origination/structuring team’s years of sector and country experience, and structurally asymmetrical risk-return conditions within Turkey, the Fund provides institutional investors with a unique opportunity to benefit from credit-worthy yet underfunded Turkish SMEs.

Sarona is investing money on behalf of Canada’s Department of Foreign Affairs, Trade and Development. Canada’s “trading up” public sector program identifies meaningful and socially constructive growth opportunities in the private sector and seeks to catalyze interest from other investors in these areas. Research conducted by Sarona and the Canadian government has identified trade finance as an asset class which fulfils this goal of bringing enterprise and positive social change to frontier market communities.

Gerry Afentakis, EFA’s Head of Strategic Development, said:
“Turkey has over a million SMEs – dynamic, growing companies that form the backbone of the Turkish economy. Our presence in Istanbul and Izmir together with a strong track record of working with small and medium-sized Turkish businesses across all sectors means we have generated steady returns for investors and helped companies to create jobs and wealth by providing growth finance. Sarona’s investment will help us continue to grow our lending activities in Turkey, providing more financial support to local SMEs.”

“Turkey is proving to be a very exciting emerging market for SMEs. It’s wonderful that EFA is so well positioned contribute to this growth story and deliver a positive impact for local businesses and livelihoods. We are also honored to have received the recognition and support of the Canadian government – particularly given its mission to help expand its productive and altruistic engagements in the private sector. We look forward to driving ahead with this program in the months and years come.”

Francois Dotta, CEO of EFA Group, said:
“EFA Crescent Structured Trade Finance Fund demonstrates our commitment to creating a positive impact for companies and communities and enabling growth through sustainable financing. We are delighted to welcome another investor into our Crescent Structured Trade Finance Fund to help us realise these aims”.

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