The Caribbean, often overshadowed in investment conversations, holds potential that seems overlooked. Countries like Jamaica and Martinique are small but unique markets, facing challenges like high interest rates and climate threats, which keep investors cautious.
Intentional Asset Management is stepping in with its CaribGROW fund, hoping to raise $100 million to strengthen local food systems. John Morris, a driving force behind this initiative, points out a stark reality: “There’s been no equity coming into the region, which stifles business growth.” He sees this fund as a way to shift the narrative.
CaribGROW plans to take minority stakes in food companies, allowing owners to keep control. Investors will receive returns before profits are shared. This structure aims to foster local businesses while enticing capital flow into the region.
Interestingly, Caribbean nations import about $6 billion worth of food each year, despite having the potential to meet a significant portion of that demand. This is where CaribGROW can make a difference by backing companies that focus on local production and value-added exports. The fund has already made its first investment in a Jamaican coffee producer committed to sustainable practices.
Morris’s connection to the Caribbean runs deep. He was inspired during a visit to the Bahamas 25 years ago while his daughters participated in a sustainability program. This experience opened his eyes to the region’s circular economy potential. “The Caribbean is rich in talent and resources,” he says, reflecting on its potential to lead in innovative agricultural practices.
Unfortunately, accessing capital has been tough for Caribbean businesses. The fragmentation among islands—different languages and currencies—along with high interest rates means many companies struggle for funding. In 2023, a major private equity firm had to cancel its Caribbean fund, highlighting the difficulties in securing investment. And yet, Morris believes CaribGROW can play a pivotal role in changing that landscape.
As they seek partners like banks and development finance institutions, Morris emphasizes, “We’re not just another fund. We aim to blend in with existing financing systems.” By working collaboratively, they hope to unlock the region’s potential and foster a thriving local food economy.
For more insights into the challenges and opportunities in Caribbean investment, listen to the full discussion on the ImpactAlpha podcast [here](https://open.spotify.com/episode/5YyciqojCgM0DBdnvF6MGP?si=QrYWfarzS42VTO-JdTvATA).
