Slow going for private equity small business fund | Sunday Observer

Slow going for private equity small business fund

The Carson Cumberbatch group has said its partnership with Washington-based Small Enterprise Assistance Funds (SEAF) for private equity investments in small business has stopped fund raising after a disappointing response.

The joint venture was set up in 2016 between Guardian Capital Partners, the fund management arm of the Carson group, and SEAF to raise funds from local and foreign institutional investors, including Guardian Capital Partners.

“Progress on the fund raising for the PE fund launched jointly with Small Enterprise Assistance Funds has been extremely slow,” said I. Paulraj, Chairman of Guardian Capital Partners, in the company’s annual report. “No investment commitments have been received so far, hence the company is looking at alternate options available together with SEAF and will look to take a decision on the venture very soon.”

Pending this, fund raising activities have been temporarily discontinued, Paulraj has said.Guardian Capital Partners held 41.7% and Small Enterprise Assistance Funds 58.3% in the joint venture management company.

They had planned to raise USD50 million in private equity funds, which was to be jointly managed with Small Enterprise Assistance Funds, but no funding commitments had been received to date.