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Mayberry to seek out equity investments
Observer Business Reporter
Friday, May 13, 2005
Mayberry Investment Limited, with nearly $2.5 billion in capital, and fresh from its successful public listing, will this year begin seeking out medium-sized firms in which to either take equity position, or to provide loans - as the brokerage house attempts to boost revenue in the wake of the reduction in rates earned on government paper.
Mayberry executive chairman Christopher Berry, in his report on the company's first quarter performance, told shareholders that the firm "will be launching a fund that will invest directly in medium-sized Jamaican businesses through debt and equity".
When contacted, Berry noted that a specific date for the launch was not yet established as preparation was in progress but that he was satisfied that the fund would be created by the end of the year.
"I wouldn't disclose a date until everything is finalised because there are still several things to be addressed, for instance, we still need regulatory approval," Berry told the Observer. "However, I do not see any problems occurring that would stop it from happening this year."
The fund is expected to significantly expand Mayberry's business in "the primary end of the capital market" and will come at a time when many financial institutions are moving away from relying heavily on interest earned from government securities due to declining spreads, and the government's promise to significantly curtail spending, hence borrowing to balance its budget.
Mayberry posted after-tax profit of $157.3 million for the three months to march 31, 2005, an 81 per cent increase over the net income of the comparative period in 2004.
Observer Business Reporter
Friday, May 13, 2005
Mayberry Investment Limited, with nearly $2.5 billion in capital, and fresh from its successful public listing, will this year begin seeking out medium-sized firms in which to either take equity position, or to provide loans - as the brokerage house attempts to boost revenue in the wake of the reduction in rates earned on government paper.
Mayberry executive chairman Christopher Berry, in his report on the company's first quarter performance, told shareholders that the firm "will be launching a fund that will invest directly in medium-sized Jamaican businesses through debt and equity".
When contacted, Berry noted that a specific date for the launch was not yet established as preparation was in progress but that he was satisfied that the fund would be created by the end of the year.
"I wouldn't disclose a date until everything is finalised because there are still several things to be addressed, for instance, we still need regulatory approval," Berry told the Observer. "However, I do not see any problems occurring that would stop it from happening this year."
The fund is expected to significantly expand Mayberry's business in "the primary end of the capital market" and will come at a time when many financial institutions are moving away from relying heavily on interest earned from government securities due to declining spreads, and the government's promise to significantly curtail spending, hence borrowing to balance its budget.
Mayberry posted after-tax profit of $157.3 million for the three months to march 31, 2005, an 81 per cent increase over the net income of the comparative period in 2004.
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