NASSAU, BAHAMAS — An innovative solution to raise capital for local businesses has been unveiled at RF Bank & Trust. The RF Strat Equity Fund (the “Fund”) was launched by the regional investment bank to help connect ambitious businesses with local investors. Set up as an investment fund, the Fund will purchase equity in companies that RF believes have above-average growth potential. The private equity opportunities selected by the Fund will be vetted by the Fund’s investment Advisor prior to seeking investor participation.
“Post-pandemic we have seen investors holding more and more cash in their portfolios as private placement opportunities have slowed. The demand for diversification and better returns has never been higher,” commented Michael Anderson, President of RF Group.
“The Strat Equity fund provides investors with access to a broader universe of investment opportunities in early stage and growth orientated companies, with the potential for enhanced overall returns and diversification to help meet longer-term investment goals.”
The Strat Equity Fund’s objective is to seek long-term capital appreciation by investing in companies that are diverse in their stage of maturity and in their size with the aim of exiting the investments within five to seven years. The Fund is structured as a segregated cell company that provides investors with the ability to choose which investment opportunities they wish to participate in without having to participate in other investments held under different share classes.
The Fund aims to provide a wide selection of investment opportunities over time by diversifying across industries ranging from technology and healthcare to consumer goods, hospitality and beyond. The minimum initial investment into the Fund is $50,000 and the overall investment risk level will be higher than publicly traded companies due to both the size of the companies and the lower liquidity levels of private shares.
“There is a clear need for additional equity capital in The Bahamas market to help fund and build younger companies,” stated Jim Wilson, Vice President of Investment Banking. “The Strat Equity Fund will identify and provide equity capital to viable businesses and help them scale in a sustainable way. The Fund will act as a catalyst to take early-stage businesses that don’t yet have the track record to get listed, to a position where they can transition from private to public ownership via an IPO”.
Companies included in the Fund will meet corporate governance standards set by the Fund Advisor together with various other qualifying criteria. Successful companies will be looking for a minimum of $5 million in capital. Equity investments can be complemented by debt raised by RF as may be required.
