US-based impact investment firm Capria Ventures will be investing up to $8 million in fund managers in selected countries with a focus on Myanmar and Nepal, according to an announcement.
“Capria’s efforts will focus on supporting local fund managers in Myanmar to strengthen their business, accelerate growth and build world-class investing operations,” it said, adding that it will back two to three general partners from Myanmar to join its global network of 22 managers.
In addition to Myanmar and Nepal, Capria has made investments in Cote d’Ivoire, Uganda, Tanzania, Ethiopia and Senegal.
The firm has opened its call for interest with regards to the new $8-million pool, targeting early-stage fund managers with a focus on impact investing.
“These countries are expected to play a vital role in their respective continents to push entrepreneurship and the region’s growth story to the next level,” Capria said.
However, it also pointed out that in order to unlock more institutional LP interest, emerging markets need support to demonstrate strong local investors being able to deliver sustained long-term profits, and access to performance information and financial data about local investments.
“With chaotic market conditions and opportunities around every corner, many fund managers focus on getting basic operations and investment processes in place without building strong institutional capacity,” the global impact investor added.
Given the “abundant opportunities” in emerging economies, Capria said it will help fund managers build differentiated strategies, adopt international standards and create collaboration within its network to deliver superior returns.
The Seattle-headquartered investor opened its Singapore office in 2018 to strengthen its investments in South and Southeast Asia. The emerging-market investment initiative, in partnership with the Australian Government, will invest as much as $20 million in this region in 2020, Capria said in an earlier announcement.
This is part of its $100-million Capria Emerging Managers Fund, from which the firm has allocated 33-40 per cent for Asian markets.
Capria has invested in three Indian venture capital funds, Unitus Ventures, Fulcrum and Unitary Helion.
Capria’s network of fund managers currently oversees more than $300 million in assets deployed in early-stage companies across Latin America, Africa and Asia.