Kevin Donaldson now a private equity investor through Root Financial

Former Sagicor Investments CEO Kevin Donaldson has invested $94.5 million to take a 42 per cent take in tech company Powell Interactive, which operates the QuickCart online delivery business.

It is the latest in a string of similar investments by the private investor, who says he is building a global business through Root Financial Group, which already has holdings in Jamaica, Trinidad & Tobago, and Florida in the United States.

“Root Financial Group is a vehicle for holding private-equity investments, private loan, and mezzanine solutions tailored for businesses. We also advise private entities on divestments, acquisitions, and mergers. We are created to support businesses in need of flexible capital,” Donaldson said via email on Thursday.

The business, incorporated in December 2020 and operational since last month, is said to have its focus on businesses in healthcare, fintech, distribution, logistics, education technology, construction or property development, and energy.

A GLOBAL ENTITY WITH CARIBBEAN ROOTS

“The aim is to create a global entity with Caribbean roots,” said Donaldson, adding that the group arrangement is representative of the business’ holding company structure that is being built out.

He added that QuickCart, formerly QuickPlate, is the first of several deals now being worked on.

“The aim is to invest in businesses that have significant potential for growth and allows the democratisation of wealth for all. We have invested in five companies already and facilitated over US$17 million in transaction value,” said Donaldson, who is sole shareholder in Root Financial.

The companies in which he has taken an ownership stake include regional payment service provider and fintech WiPay Jamaica; Caribbean marketplace CaribShopper, which is said to enable small manufacturers to export their products to North America and earn hard currency; and EduFocal, the Jamaican education technology platform that offers tutoring for the Primary Exit Profile examinations.

“There are other stakes which we will provide details on in short order. All our holdings follow a similar pattern. They involve improving access to all,” Donaldson said.

The investment in QuickCart is intended to help the local technology-based food service delivery company become a regional e-commerce and logistics provider.

“The transaction involved the initial purchase of holdings held by a group of investors representing 22 per cent of the company as well as fresh capital for the expansion programme of the company. The goal of the transaction is to position QuickCart for exponential growth,” said a release issued by Donaldson.

The transaction was arranged by Roots Financial with legal services provided by Patterson Mair Hamilton and Carter Lindo, it said.

“Their investment is a signal of their confidence in both the vision of the company and its leadership. This fresh injection of capital will go a long way in helping us to execute on our plans for expansion and product development, and we look forward to the perspective that Kevin Donaldson will bring to the table through his position as a newly appointed board member,” said Monique Powell, QuickCart’s founder and CEO.

“I am extremely pleased that Roots Financial has decided to come on board as an investor,” she said.

QuickCart, which was started in March 2016, and has operations in Montego Bay and Kingston with partnerships involving more than 130 merchants, takes orders via the Internet and delivers meals on behalf of food establishments.

huntley.medley@gleanerjm.com