Kenya’s Retail Pharmacy Attracts Private Equity Investment

Mimosa Pharmacy Limited, a retail pharmacy in Nairobi Kenya, has secured investment from Catalyst Principal Partners a private equity firm specializing in growth investments.

Catalyst said it made the investment jointly with Africa Chemist and Beauty Care (ACBC), a Mauritius-based pharmaceutical chain. The deal amount was not disclosed but a typical investment ranges between $5 million (Sh444 million) and $20 million (Sh1.78 billion). The private equity firm, however, said the stake is a mix of equity and debt.

Catalyst said its latest investment is meant to get it into the booming healthcare market, which has been rapidly expanding for more than a decade. Mimosa becomes the second pharmacy chain to get a private equity investment over the past 12 months.

Last September, Fanisi Capital bought a stake in local pharmacy retail chain Haltons for an undisclosed amount.

ACBC estimates the pharmacy industry in Kenya is worth about $440 million (Sh39.4 billion) with an average annual growth rate of 22 per cent. The private sector accounts for half of the growth.

Source: Asoko Insight

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Mimosa Pharmacy Limited, Nairobi Kenya, Pharmacy, Retail Pharmacy, Pharmacy Chain, Catalyst Principal Partners, Africa Chemist and Beauty Care, ACBC, Mauritius, Fanisi Capital, Haltons, Kenya.


Africa’s Ascent Raises $50M for East Africa Fund

A Kenyan private equity firm Ascent Capital, has raised the amount of $50 million for a new growth capital vehicle targeting East Africa.

Private equity is still a relatively new development on Africa’s financial landscape but it has been growing in recent years as investors chase higher returns from economies enjoying robust growth.

Ascent said the fund, known as Ascent Rift Valley Fund, is backed by private and institutional investors from Kenya and abroad, including Kenyan pension funds.

“This is the first time in the region that local pension funds have committed to invest in a private equity fund,” David Owino, a partner at Ascent, said in the statement seen by Reuters on Wednesday.

The firm has offices in Kenya, Uganda and Ethiopia.

Source: Reuters Africa

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Kenya, Kenyan Private Equity Firm, Ascent, Ascent Capital, East Africa, East Africa Fund, Africa, Ascent Rift Valley Fund, Kenyan Pension Funds, David Owino.


Umeme Ltd Eyes Private Equity Investment

Umeme Ltd, a regulated electricity distribution company in Uganda, reported it is planning to sell 45.1 percent out of the 60.08 percent stake it owns in the utility through a private placement.

Umeme Holdings, a subsidiary of London-based private equity firm Actis, said in a statement in Kenya’s Daily Nation newspaper that it anticipated the sale will have no effect on the management or board of the utility or its finances.

“A seamless transaction would allow the original founding shareholder of Umeme to reduce its shareholding through secondary sales to investors on the Ugandan and Kenyan markets,” Umeme Holdings said.

“The decision by the company to reduce its investment and bring in new investors by private treaty is guided by the need to ensure that the bulk of the shares to be sold are placed with institutional investors…”

Source: Reuters

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Umeme Ltd, Uganda, Electricity Distribution Company, Umeme Holdings, London, London Private Equity, Actis, Kenya, Daily Nation.


Carlyle Group’s First Sub-Saharan Private Equity Africa Fund

The Carlyle Group, an American-based global asset management firm, specializing in private equity, has recently became the first global private equity firm to close a fund that is focused solely on deals in sub-Saharan Africa.

The fund, which opened in 2012, reached $698 million, almost $200 million above its initial target of $500 million.

The fund is earmarked for financial sector investment, though what specific direction is still being finalized.

Though the Carlyle fund was the largest of its kind in the region’s history, sub-Saharan Africa, particularly in young, high growth countries like Nigeria, have drawn increasing investor attention with an expanding middle class and focus on sophisticated entrepreneurship, particularly among those building a payments and commerce infrastructure for emerging markets.

M-Pesa, Vodafone’s mobile phone based money transfer and micro-financing service, first launched in Kenya in 2007. By 2011, less than five years, the service had signed up more than 17 million users in Kenya alone. In Tanzania, where adoption has been much slower, 5 million users have signed on.

Source: PYMNTS

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, The Carlyle Group, Carlyle, American Private Equity, US Private Equity, Sub-Saharan Africa, Vodafone, Kenya, Tanzania.


4Di Capital Invests in African Startups

4Di Capital, an early-stage technology venture capital fund manager, focusing on young entrepreneurs and tech startups, has invested in startups in Africa.

It helps these businesses with investment, access to business networks and technical infrastructure in exchange for a small equity stake. It has already spent more than $1m on investing and supporting start-ups in Africa.

The venture company now has more than 30 companies in its programme — 20 in Kenya and 10 in South Africa — and hopes to add 10 more in the latter.

The company said the start-ups were from different fields within mobile technology and were selected after a three-month programme to vet more than 300 applicants.

Source: BDlive

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, Early-Stage Technology Venture Capital Fund, African Startup, Startup, Start-Up, Kenya, South Africa.


Private Equity Investment Warms Up in Nigeria and Kenya

The attention of significant private equity fund has been attracted by economic powerhouses of West and East Africa, Nigeria and Kenya respectively.

Private equity is a vital facet of sustainable development – serving as a mechanism to allow businesses to establish themselves, and to expand. Private equity funds enhance that effect through collective investment, in areas related to private equity: venture or growth capital, distressed investments, leverage buyouts, or mezzanine capital. African countries continue to experience significant economic growth, and seek to encourage investment in order to sustain that high level of growth.

One Thousand & One Voices LLC, is an Africa-focused private-equity fund that has announced its interest in Nigeria and Kenya based companies. Specifically, One Thousand & One Voices is focusing on three companies, two in Nigeria, and one in Kenya.

Source: KPMGAfrica

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, West Africa, East Africa, Nigeria, Kenya, Venture Capital, Growth Capital, Distressed Investments, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Mezzanine Capital, Africa, One Thousand & One Voices LLC.


One Thousand & One Voices to Invest in Kenya and Nigeria

A private equity movement One Thousand & One Voices LLC, is in talks to invest in two Nigerian companies and another in Kenya.

In Nigeria, “one is a purely consumer-facing opportunity the other is also in the manufacturing space with a consumer theme to it,” Hendrik Jordaan, president and chief executive officer of the fund, said in an interview today. “The companies we’re looking at are all private.”

One Thousand & One Voices, started by John Coors, the great grandson of Coors Brewing Co.’s founder, is hunting for private-equity investments that tap Africa’s growing consumer markets. The fund, which hired former TPG Capital partner Dag Skattum, has received commitments from more than 15 of the world’s richest families since starting last May and expects to meet a goal of raising $300 million by December, Jordaan said.

“We have sufficient capital from over 15 families that allows us to close on all the transactions in our pipeline,” Jordaan said in Lagos, Nigeria’s commercial capital, adding that the fund is also in talks with potential family investors in Latin America, Southeast Asia and Africa. “I’m going to be in London and Paris later this week, meeting with leading families in those geographies.”

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, One Thousand & One Voices LLC, Nigeria, Kenya, Hendrik Jordaan, John Coors, Coors Brewing Co., Africa, TPG Capital, Dag Skattum, Lagos, Latin America, Southeast Asia, London, Paris.


SSA Attracts $1.6B in Private Equity Investment in 2013

In 2013, Sub-Saharan Africa (SSA) has attracted $1.6 billion in private equity investment marking the highest investment of its kind in five years.

According to the Emerging Markets Private Equity Association (EMPEA), sub-Saharan Africa – as the fastest growing region in the world – has attracted private equity investors that are targeting the consumer spending patterns that are set to be triggered by the growing middle class.

“Some of these investors also are attracted to natural resource discoveries in countries like Kenya, Uganda and Mozambique and the transformational effect they will have on their economies,” according to AMPEA.

East Africa, including Mozambique, represented more than a third of the 74 transactions struck last year.

The region’s inflows doubled to $769 million on the back of gas discoveries in Tanzania and Mozambique and other hydrocarbon discoveries in Uganda and Kenya.

“In SSA, 2013 was the beginning of a big deployment phase for private equity capital,” Robert van Zwieten, the CEO at EMPEA, said.

“Such deployment resulted in a drop in fundraising for the region but a five-year high for investment,” Zweiten continued.

Source: Ventures Africa

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Sub-Saharan Africa, SSA, Emerging Markets Private Equity Association, EMPEA, Natural Resources, Kenya, Uganda, Mozambique, Tanzania, Robert van Zwieten.


Kenya Attracts Interests from Carlyle Group

Kenya attracted interests from The Carlyle Group, an American-based global asset management firm, specializing in private equity, based in Washington, D.C.

The Wall Street Journal reported early last month that the America-based global asset management firm is considering opening an office in Kenya having raised funds for investment in Sub-Saharan Africa.

The US business journal attributed the report to Marlon Chigwende, the Carlyle Group co-head of Sub-Saharan Africa buyout advisory team.

The global private equity group’s manager for media relations in Europe, Middle East and Africa, Catherine Armstrong, said in an interview in the Business Daily that Carlyle is “looking at investment opportunities in consumer or consumer-related companies.”

“A new (Nairobi) office is (not) a certainty.., but we will continue to look for potential investments in line with the investment plans of the overall fund, which covers all of sub-Saharan Africa,” said Catherine.

Carlyle manages 118 distinct funds and 81 fund of funds vehicles that invest across four segments, 11 core industries and six continents.

Source: 4-traders

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, US Private Equity, American Private Equity, The Carlyle Group, Carlyle, Kenya, Washington, D.C., Wall Street Journal, Sub-Saharan Africa, Marlon Chigwende, Europe, Middle East, Africa, Catherine Armstrong, Business Daily.


Fanisi Capital to Launch Second Fund in 2014

Fanisi Capital, Kenyan private equity firm, is planning to launch a second fund of at least $100 million before the end of 2014. The Fund’s main purpose will be to invest in new markets across sub-Saharan Africa.

Fanisi’s new fund will seek to invest in markets outside of east Africa, where the first fund is focused, Managing Partner Ayisi Makatiani said.

“We may look at DRC (the Democratic Republic of Congo), Ethiopia, Sudan, South Sudan and all the way down to Zimbabwe and Zambia,” he said.

Fanisi’s first fund of $50 million, a close-ended ten year fund, was launched in 2010 and it has been invested in a high-end private school in the Kenyan capital, a Kenyan chain of retail pharmacy stores, a wholesale pharmacy business and a maize milling firm in Rwanda.

The size of the new fund: “will be driven mostly by the fact that the companies in which we have invested in are continuing to grow,” Makatiani said. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Kenya Private Equity, Kenyan Private Equity, Fanisi Capital, Sub-Saharan Africa, Ayisi Makatiani, DRC, Democratic Republic of Congo, Ethiopia, Sudan, South Sudan, Zimbabwe, Zambia, Kenya.


Investment Firm PCP Releases Sh2.2B Fund for Small Agri-Businesses in East Africa

A specialist agriculture investment firm Pearl Capital Partners is releasing a Sh2.2 billion fund to finance small businesses in agriculture and agri-business in East Africa.

The move follows a research that showed record returns from the sector over all others.

“I do not want to reveal the actual returns in the industry, but what we have seen in the past few years of investing in agribusiness in East Africa is mind blowing,” said Wanjohi Ndagu of Pearl Capital Partners (PCP).

Dubbed Africa Agricultural Capital Fund (AACF), the entire fund will be invested in small businesses in the agriculture value chain. This includes businesses engaged in seed development, irrigation systems, agro-processing and packaging, among others.

“Twenty start-up businesses that have the potential to transform the lives of small-hold farmers will receive between $300,000 (Sh25.5m) and $2.5m (Sh212.5m) in the form of equity, debt or a mix of the two,” said Tom Adlam, PCP managing partner.  Seventy-five per cent of the fund $19 million (Sh1.653 billion) will be invested in the core East Africa countries; Kenya, Uganda and Tanzania.

“There is a mode of investment and investors who are not only interested in the financial returns of the fund, but also on the impact of the fund on development,” said Tom. Source

 

Tags: Private Equity, Private Equity investment, Equity fund, Investment firm, PCP, Pearl Capital Partners, Agri-Businesses, Africa, Africa Agri-Businesses, East Africa, Wanjohi Ndagu, Dubbed Africa Agricultural Capital Fund, AACF, Tom Adlam, Kenya, Uganda, Tanzania, Startup, Start-Up.


Kenya Launches Bond Sale and a Venture Capital Fund to Improve Broadband System

Kenya to launch a bond sale and a venture capital fund to improve broadband system in the country

The government of Kenya revealed that it is planning to put up for sale around US$800 million worth of national infrastructure bonds. The Kenyan government also said that it would be establishing a venture capital fund to widen its broadband Internet network across the nation more than six-fold.

Kenya’s national broadband steering committee and its officials wanted to boost the amount of households with high-speed Internet access from today’s 6.3% to 35% by 2017 Susan Mochache-Wekesa, an assistant director at Communications Commission of Kenya, said. Kenya’s broadband steering committee has representatives from state bureaus that includes the Communications Commission of Kenya. According to Ms. Mochache-Wekesa, the venture capital fund should be able to raise about KES30 billion.

“In the short term we will need 100 billion shillings. We will require 210 billion shillings by 2030,” Ms. Mochache-Wekesa explained. She did not reveal when the proposed bond would be offered for sale. Source

 

Tags: Kenya, Bond Sale, Capital Venture Fund, Broadband system, Kenya government, Venture Capital fund, Internet, Susan Mochache-Wekesa, Communications Commission, Communications Commission of Kenya.


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