LONDON, Oct. 4, 2021 /PRNewswire/ -- Scarcity of traditional bank financing and pandemic-inflated interest rates are threatening the viability of highly strategic and lucrative start-ups and early-stage companies that are key to post-COVID economic recovery in developing markets around the world.
Now a new alternative finance model is emerging that is helping resurrect these companies and get high-value strategic development projects back on track.
This alternative model has financial consulting groups pooling investments from hedge funds, pension funds, sovereign wealth groups, angel investors and other investors who share an interest in highly targeted growth sectors, such as renewable energy, cyber security and e-commerce. These are all sectors that are expected to be key drivers of post-COVID economic recovery as well as long-term sustainable economic growth in developing markets.
The Infinity Group is enabling investors to pool funds to more easily and effectively tap into the opportunity of the rapidly growing green economy while providing up-and-coming developers and operating companies access to financing that otherwise is either unavailable or too costly to make economic sense.
A number of markets in Africa have newly formed companies looking to lead highly strategic climate action projects in areas such as solar, hydro, waste-to-energy and other renewable energy sources.
The companies behind these projects are led by highly qualified and experienced management teams and have strong business models capable of capitalizing on rapidly declining development and generation costs for these renewable energy sources. They also tend to have strong local government support for the potential contribution to local economic growth as well as reducing national reliance on costly electricity imports.
But incredibly high interest rates in countries like Nigeria, South Africa and many others threaten their viability.
With this new model, The Infinity Group gives the investors access to high-value growth opportunities in sectors that contribute to expanding their ESG (Environmental, Social, Governance) portfolios. And the early-stage development companies get access to capital at attractive rates and extended payment terms that are enabling them to get up and running quickly and efficiently.
