Kenya-based private equity firm, Fanisi Capital, has launched its second fund – Fanisi Capital Fund II, a closed-end, 10-year growth fund looking to raise a total of up to US$100 million to invest in agribusiness, consumer goods, education, and healthcare in Kenya, Rwanda, Tanzania, and Uganda.
The firm plans to raise US$40 million of the total corpus locally with the balance being raised from international investors.
“We are essentially involved in building African businesses and African value chains, and have done so successfully in the past,” said Ayisi Makatiani managing partner and CEO of Fanisi Capital. “This is why local investors are especially keen to put money into our fund.”
Will The IFC Board be on Board?
The Board of the International Finance Corporation (IFC), a part of the World Bank Group, is reportedly considering committing up to $7.5 million to Fanisi’s Fund II, according to Africa Capital Digest.
However, beyond a commitment of capital, the IFC is also looking to supply Fanisi with advisory services including the sourcing of experts in the field of due diligence, as well as other teams that will be responsible for ensuring environmental, sustainability, and best practices standards are being met, and to help the firm’s portfolio management companies grow topline revenue.
These actions have yet to be approved, however, Africa Capital Digest reports that the IFC Board is scheduled to meet on November 3 at which time it is expected that it will vote on and approve the commitment.
Building on Fund I
Founded in 2009 by the Norwegian Investment Fund for Developing Countries (Norfund) and Amani Capital Limited, Fanisi has invested in companies that are post revenue and that have demonstrated a profitable future in the agribusiness, healthcare, energy, natural resources, consumer and education spaces according to the company’s website.
The launch of Fund II follows on the firm’s first fund, the US$50 million Fanisi Venture Capital Fund S.C.A, SCIAV-SIF, which makes direct investments into segments that have traditionally been considered outside of the mainstream venture capital space in East Africa. Launched in 2010 and fully invested in 2015, the portfolio of Fund I includes Haltons Pharmacy, Kijenge Animal Products in Arusha, Tanzania, ProDev/Minimex Group in Rwanda and European Foods Africa Ltd (EFAL) among others.
“Fanisi Fund II will essentially build on the success of Fund I, allowing us to positively impact even more African businesses and help drive the regional economy forward,” said Tony Wainaina. Fanisi Capital Managing Partner reports Capital Business.
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Lynda Kiernan