Establishing equity fund

Description

Establishing an equity fund involves creating a pooled investment vehicle to mobilize capital for targeted enterprises or sectors, particularly those underserved by traditional financing. This strategy aims to address funding gaps, stimulate economic growth, and support innovation by providing equity investment, risk-sharing, and management expertise. By channeling resources efficiently, equity funds remedy barriers to business development, job creation, and sustainable progress, fostering inclusive financial access and resilience in emerging or disadvantaged markets.

Implementation

The Commonwealth Equity Fund was established in 1990 to enable capital importing developing countries of the Commonwealth improve their access to private institutional portfolio investment on a long-term basis. It is capitalized at around US$ 60 million. The fund operates on a commercial basis with no official financial support. Investment is mainly in countries with established stock markets although up to 30% of capital may be invested in unquoted securities.