NDB Capital, Zephyr Launch Emerald Sri Lanka Fund

Thomas Barry, Founder/CEO, Zephyr Management LP; Dr Jurgen Morhard, Ambassador, Federal Republic of Germany; Rajendra Theagarajah, CEO, National Development Bank; Ms. Lianne H. W. S. Houben, Dy Head of Mission of the Netherlands and Vajira Kulatilake, CEO, NDB, Capital Holdings

NDB Capital Holdings and Zephyr Management launched Emerald Sri Lanka Fund, a private equity fund dedicated to Sri Lanka. The Emerald Sri Lanka Fund will invest in small and mid-sized businesses seeking expansion capital in Sri Lanka. The Fund Manager, NDB Zephyr Partners, is jointly owned by NDB Capital Holdings, one of the leading investment banking services provider in Sri Lanka, and Zephyr Management LP, the New York-based global emerging markets investment firm.

NDB Zephyr believes that Sri Lanka provides excellent conditions for growth of small and mid-sized companies. These conditions include political stability, a rapidly growing economy and an educated labor force. Sri Lankan SMEs currently have limited equity raising options until an IPO.

NDB Zephyr will assist its portfolio companies in areas such as strategic planning, management development, financial management, corporate governance and operational efficiencies. The Fund Manager will also help the portfolio companies in accessing international markets and optimizing their capital structures.

The Fund will be the largest private equity fund dedicated for Sri Lanka and seeks to make investments, generally in the range of US$ 2 million to US$ 6 million, in equity and equity-linked securities in fast-growing small and medium-sized enterprises in Sri Lanka.

The Fund size is expected to be US$ 50 million. The Fund’s investors include some of the most experienced investors in emerging markets including IFC, a member of the World Bank Group, DEG- Deutsche Investitions- und Entwicklungsgesellschaft mbH and FMO (the Netherlands Development Finance Company).

According to Rajendra Theagarajah, CEO of NDB Group, NDB is pleased to take the leadership role in the launch of this Sri Lanka dedicated private equity fund. “We believe that the launch of the Emerald Fund will help facilitate the emergence of a new industry that will serve many Sri Lankan companies in the years to come,” he said.

Thomas Barry, Founder and CEO of Zephyr Management said “We are excited about our participation in the first institutional private equity fund in Sri Lanka. NDB’s strong reputation and experience in the Sri Lanka capital markets will provide the Fund’s investment team with much needed local experience, knowledge and relationships”.

“Private equity funds, like the Emerald Sri Lanka Fund, provide much needed risk capital for small and medium sized businesses,” said Adam Sack, IFC Country Manager for Sri Lanka and Maldives, and added “The fund will support entrepreneurship, job creation and contribute to economic growth.”

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