ARQCapital Partners to invest in more small firms

ARQCAPITAL Partners, Inc. is raising more funds to reach its target to invest about P2.5 billion in 50 “high-growth” medium enterprises in next three years, it said in a statement last week.

“ARQ will continue to respond to the need of SMEs (small and medium-sized enterprises) of appropriate and sustainable capital during their growth phase, ensuring that these value-adding partnerships will help elevate the financial inclusion of SMEs and push for a sustainable economic growth for the Philippines,” ARQCapital Chief Executive Officer and founding partner Edmund M. Solilapsi said.

The company said it will invest about P300 million in residential development company Atharra Group and financial tech (fintech) startup Advance Tech Lending, Inc. through its unit ARQ SME Mezzanine Business Development Co.

ARQ SME Mezzanine was formed by ARQCapital in 2014 to be an SME-focused private mezzanine debt investor.

“ARQ is supporting Atharra and Advance to become significant players in their respective industries, which is consistent with our goal to invest into promising medium enterprises tracking a path of sustainable growth,” Mr. Solilapsi said.

Atharra will use the funds from ARQCapital for two affordable housing projects in Bohol.

The company has built more than 250 residential properties in Baclayon, Bohol and Tagbilaran City under its Atharra Residences unit, with about 490 still under construction.

It is also investing in fintech startup company Advance Tech Lending, which partners with employers to extend salary advances to their employees through its “instant credit” platform.

“By providing financial lifeline to employees, the company is helping organizations grow, boost employee morale, and enhance their retention and productivity,” Mr. Solilapsi said.

The two companies are part of ARQCapital’s current portfolio of about 20 high-growth medium enterprises that include renewable energy firms and affordable housing developers.

“The country’s first “smart capital” investor, which provides strategic management direction and other business development tools beyond capital, has deployed about P1.5 billion to more than 35 investees since 2014,” it said.

“ARQ has provided mezzanine financial services to the underserved SMEs since 2016, bridging the capital gap requirements of high-growth entrepreneurs,” the company added. — A.H. Halili