CrossBoundary Advisory discusses solutions to bridge the investment gap in the Caribbean

As a global market leader in finance and investment solutions for underserved markets, CrossBoundary Advisory is excited to participate in and drive conversations on investment opportunities in the Caribbean forward. Since January 2023, our team has been in deep collaboration with USAID and the CARICOM Development Fund (CDF) to design and structure the Caribbean Community Resilience Fund (CCRF). The fund, a US$135M blended finance investment vehicle to mobilize institutional capital into climate and economic resilience, launched earlier this year.  

At the forum, our team spoke on a panel highlighting innovative financing mechanisms and connected with potential investors and regional stakeholders. The forum highlighted sectors such as sustainable agriculture, green economy transition, and digital business, underscoring the region’s commitment to attracting and retaining investment. 

Growing interest from institutional investors 

The Caribbean’s vibrant economic landscape is capturing the attention of major institutional investors, including development finance institutions and prominent commercial investors. This growing interest signals a pivotal moment for the region, highlighting its emergence as a compelling investment destination with untapped opportunities. 

Bridging the investment gap 

While enthusiasm from institutional investors is present, we identified a nuanced challenge: a mismatch between available capital and current investment opportunities. This gap manifests in two critical areas: 

1. Deal size: Institutional investors typically look for larger ticket sizes than what is predominantly available in the Caribbean market 
2. Deal readiness: Some potential investments in the region may not yet meet the stringent due diligence and structuring requirements of institutional investors 

To address these challenges and accelerate private capital deployment in the Caribbean, our Head of Caribbean Advisory, Jamie McInerney, proposes two strategic solutions:  

Elevating advisory expertise:  

Pre-investment, there’s an opportunity to utilize specialized advisory services tailored to the unique needs of the Caribbean market. These services could play a pivotal role in preparing transactions and streamlining the deployment of institutional capital. By helping local enterprises meet global investment standards, we can unlock significant capital flows and foster a more robust investment ecosystem. 

Pioneering regional funds:  

The creation of funds focused on the Caribbean presents an innovative approach to market development. These funds could serve as a crucial bridge, aggregating smaller deals into more substantial, attractive investment vehicles for institutional investors. Moreover, they would bring invaluable local expertise and rigorous due diligence processes, enhancing investor confidence and regional economic growth. 

The 2024 Caribbean Investment Forum highlighted both the challenges and the immense opportunities present in the region. As we move forward, CrossBoundary remains committed to collaborating across the investment ecosystem to develop innovative solutions that can drive sustainable economic growth in the Caribbean and beyond.

Thank you to Caribbean Export, GO-Invest [Govt of Guyana investment promotion agency], and all the sponsors for making the conference a major success.