Private Capital Funds in Jamaica
The private capital ecosystem in Jamaica has been in a nascent stage, with little to no activity for the past two decades preceding 2013. Several gaps had contributed to the lack of development of the industry, including the availability of risk capital, the legal and regulatory landscape, and the knowledge levels of both financiers and entrepreneurs.
The Jamaica Venture Capital Programme established by the DBJ in 2013, executed a number programmes aimed at addressing these gaps. This intervention led to increased stakeholder activities and increase in the availability of private capital funding, since 2016.
Common Fund Strategies
Investment in private companies, through buyouts, buy-ins, and
expansion or replacement capital.
Debt financing typically used to provide expansion capital to private companies
A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full
Investment in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets, or finance a significant acquisition without a change of control of the business
The managers mainly invest in large companies including utilities, transport, energy, and communications providers, but have the flexibility to invest in companies of any size.
A vehicle for investment in innovative start-ups and early-stage companies with high growth potential. Venture capital is considered to be a sub-set of the private equity asset class
A fund established for the purpose of making co-investments in seed and early-stage companies, alongside angel investors. Investment instruments may include equity and/or debt.
