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Chukka Caribbean Adventures Get $5 Million Fresh Equity Infusion from Portland

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Chukka Caribbean Adventures, the Jamaican business group promoted by the Melvilles, had invited the investment company, Portland Private Equity, a couple of years ago to make investments in some of its group firms. It started with an investment of $8 million in the holding company, Diverze Assets Inc. in 2017 followed by another tranche in June last year. The investment now is in Chukka Caribbean Adventures Limited and the $5 million comes from Portland Caribbean Fund II. The company says these funds will be deployed in expanding their business.

Businesses Linked to Tourism in the Island

Chukka Caribbean Adventures, as the name suggests, is a company that is engaged in the tourism sector in Jamaica and other territories. Tours offered by the company include beach adventures, zip lines, climbing waterfalls, catamaran cruises, snorkelling, horseback rides, and caves and historic tours. They continue to add more options and one of their newly added offerings is a zip line canopy tour of rainforests in Montpelier, St. James. One can also choose from jeep safaris, nature walks and exploration of a 150-year-old dam, etc. There are over 700 people employed by the company most of them based within the island.

Broadening the Capital Base to Expand further

In the financial and investment world, the investment companies raise capital to fund ventures which in turn use these funds to make further acquisitions. In this current case, for example, Portland Caribbean Fund II had raised $200 million from the market. It has invested these funds in the Melville Group over a period of time. The Melville Group, in turn, can make acquisitions in its own line of business by deploying these funds accordingly. This enables them to diversify and expand their target markets and product offerings. The cruise ship operations and the hotel partners that the company works with, will constantly need fund infusion for both upgrades as well as for regular working capital. Staying funded helps with meeting these needs swiftly.

The investors will subsequently divest the shares they have bought, generally by listing in the stock exchange. They earn a huge profit through such investment-divestment processes.


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