Sygnus private equity expanding portfolio
SYGNUS private equity investment fund, “Sygnus Deneb”, is looking to continue expanding its investment portfolio by raising US$20 million to deploy in a strong investment opportunity pipeline.
“We are raising $20 million to continue the growth of our private equity investment company. A part is seeing strong demand by companies for equity investments, and the company currently has a pipeline of US$50 million which spans six sectors,” said chief executive officer of Sygnus, Berisford Grey.
These six sectors include energy, distribution, financial services, logistics, food and beverages services, and oil and gas.
Sygnus Deneb has so far built up a portfolio of investment in companies that include some household names such as Chukka Caribbean and other strong companies in the Dutch Caribbean. Three more companies are in the advanced stages of negotiation, and according to Sygnus the closing period for these deals is imminent.
“We literally have complete due diligence signing documentation and we are maybe four to six weeks away from closing others are in the due diligence phase,” Grey said in an exclusive interview with the Jamaica Observer.
Sygnus Deneb is a private placement under the exempt distribution guideline, and the minimum investment is US$100,000 or the equivalent in Jamaica dollars.
“We are going to be offering at US$0.11 cents per share or $17,” said Grey.
The minimum subscription will be 1 million shares. He explained that about US$40 million is actually needed. However, the process to invest takes a long time, and rather than securing capital and sitting on it for years, Sygnus has developed a strategy to do business in phases through which all investors can benefit.
“It takes between three to nine months, and probably longer, to close a deal. We don’t want to raise too much capital, sit on it, working through
be readily exported to several countries around the world duty-free under the provisions of about 11 of the available trade agreements to which Jamaica has signed.
The trade agreements which largely assist local importers and exporters with securing improved access for goods and services in contracting states also often reduce some of the trade barriers existing in those markets.
With Government now heavily focused on driving up exports in light of a highly disproportionate trade deficit in which imports account for the bulk of current transactions, all efforts are being made to push more local products and services to outside markets, and to close in on a widening deficit. At the end of 2022 the country’s trade deficit stood at US$5.8 billion, and according to data revealed by the Statistical Institute of Jamaica (Statin) in its trade bulletin, imports up to the end of last year were valued above US$7 billion — almost 30 per cent above that of 2021 — while exports, even after some growth of its own, marginally closed at US$1.9 billion.
The Jamaica Trade Board, which acts as the certifying authority for goods exported under the various trade agreements, has responsibility for World Trade Organization (WTO) requirements on import licensing along with the issuing of import and export licenses for specific items that may have a negative impact on the environmental, social, or economic conditions of the country. The body also, in conducting product analyses, issues certificates of origin for exports under various preferential trade agreements, ensuring that the country meets its international obligations under the WTO agreement regarding the rules of origin.
Following the launch of its Jamaica Trade Information Portal (JTIP), the trade certifying body said it is now able to seamlessly provide more services to clients, and in an easier and more convenient way.
“The platform, launched about four years ago, provides a comprehensive source of regulatory information related to all cross-border transactions, through a single platform. It has 34 content providers that provide information as it relates to the relevant measures and procedures that businesses can take to get their products qualified, also featuring an export guide,” Buckle said.