VMIL to elevate private equity transactions in hunt for better returns
Published:Friday | September 12, 2025 | 12:08 AM
VM Investments Limited, VMIL, is reorienting its focus towards more private equity transactions and less on corporate debt to drive better returns for the company.
It comes amid challenging market conditions – a sluggish stock market and lingering concerns about bond defaults – that pushed the company into the red in the June quarter.
VMIL CEO Rezworth Burchenson says the company sees growth potential in the private equity space and will be pursuing its new strategy along two fronts, namely, through direct investments by the company and indirectly through partnerships such as JASMEF.
He said at VMIL’s quarterly investor briefing on Tuesday that the company would be pursuing deal across the Caribbean.
“If more capital is provided with the requisite support, we will see a lot more interest in development in the Caribbean,” Burchenson said.
In the June 2025 quarter, the company spun from profit of $23 million to a loss of $6.7 million.
“Current market conditions remain challenging for generating outsized returns,” the company reported to shareholders in its earnings report.
“The strength of the macroeconomic environment has not yet translated into improved investment market performance,” it said, while noting that elevated interest rates continue to weigh on equity market activity.
The company added that Jamaica’s open economy remains vulnerable to external shocks, particularly shifts in US economic conditions that influence remittances, exports, and investor sentiment.
“This interplay between strong domestic fundamentals and weaker market conditions underscores the importance of disciplined investment strategies and prudent risk management in the current environment,” VMIL said.
Burchenson said at Tuesday’s briefing that there was demand from SMEs for equity financing and that VMIL was in the process of hunting prospects.
“We are in the space looking for well-run companies seeking to get to the next level,” he said. “As we build out our private equity platform, this is the direction we are looking to go in adding those services. While there is some reticence now, just as with the early days of the junior market, we expect increasing uptake as the benefits become clearer.”
VMIL holds a diversified capital markets portfolio, including bonds and equities, worth $22 billion amid total assets of $32 billion. Its equity investments continue to face pressure due to the sluggishness of the Jamaican stock market which is performing near its pandemic lows, while in the bond market, investor appetite has been “dampened by lingering concerns from prior defaults”, the company said.
For the first half of 2025, January-June, VMIL suffered a loss of $39 million, in stark contrast to $533 million of profit in the 2024 period. The downturn resulted from flat interest revenue of $871 million, a dramatic fall-off in gains from investment activity, and higher operating expenses.
For the second half of 2025, July-December, VMIL’s focus will be on asset management and real estate, executing deals already in its pipeline, and expanding in Barbados.
“With our strong transaction pipeline, disciplined cost management, and our sharpened focus on private equity and regional growth, VMIL is strategically positioned to deliver long-term value to our shareholders,” said Burchenson, having declared his optimism about VMIL’s performance for the rest of 2025 and in year 2026.