‘Smart capital’ investor allots P1.5B for 50 PH firms in 2 years
June 9, 2022 | 10:51 PM
Philippine mezzanine investor ARQCapital Partners (ARQ) is pushing “smart capital” investments in the private and alternative lending space by raising P1.5 billion to fund as many as 50 high-growth medium enterprises (MEs) over the next two years.
“There are a few ‘smart capital’ investors in the Philippines today and this space has yet to be institutionalized,” said ARQ founding partner and CEO Edmund M. Solilapsi in a news briefing.
He said the country’s financing market is dominated by banks and non-bank financial institutions, which are primarily passive capital providers and predominantly asset-backed.
At the same time, he added, the private lending space is highly fragmented and is generally yield-driven with no clear thematic approach necessary in providing smart capital and creating an enabling environment for these enterprises.
Likewise, he said venture capital firms focus on early-stage startups and tech-driven companies while private equity investors and strategic investors focus on larger investments and more mature enterprises.
This environment leaves SMEs with more traditional but similarly growing businesses uniquely challenged to find the right capital partner to fuel their growth.
Read Full Article Here: https://newsbytes.ph/2022/06/09/smart-capital-investor-allots-p1-5b-for-50-ph-firms-in-2-years/