Nairobi: Fanisi Capital has received commitments worth $30 million (Sh3 billion) in the first phase of its second round of capital raising, Fanisi Capital Fund II.
Fanisi Capital Fund II, which is a close-ended ten-year SME venture fund, has a target of $ 75 million (Sh7.5 billion) in the next 12 months and will continue with its investment strategy in East Africa. Fanisi Fund 1, which is fully invested, was a $50 million (Sh 5 billion) fund.
Fanisi Capital Managing Partner and CEO Ayisi Makatiani said this round of capital raising had seen a strong interest from local investors, accounting for 45 per cent, with the rest coming from various international investors.
“We got eight local pension funds investing in this round, which is a big move for us as Fanisi and even the industry, as a whole. As a Kenyan-based private equity firm it is a great milestone for us to launch a second fund, and more so to raise what we have so far, and the support we have received. We are optimistic about the market and growth in our industry,” he said.
He noted the new money will enable the firm to build on the momentum of the first fund mainly looking at four key high growth sectors – healthcare, retail and wholesale, education and agri-business. The Private Equity firm will continue its investments mainly in Kenya, Rwanda, Tanzania and Uganda.
Tony Wainaina, a Managing Partner at Fanisi Capital, said the new money would help consolidate the gains made from the first fund.
“We have seen growth in the markets we have moved into so far and we are looking to capitalise on what we have gained so far and build even stronger businesses. We are in this business to invest in enterprises where we can develop together by growing value chains across the key sectors we have identified” he said.
Fanisi’s Fund I was invested in various businesses, including Haltons Pharmacy, Hillcrest International Schools, Ngare Narok Meat Industries, ProDev Group Holdings and Sophar Limited in Rwanda, and Kijenge Animal Products Limited in Tanzania among other investments in the region.
The Fund also received various accolades, including winning the Portfolio Company of the Year (social impact) award for its investments in Haltons Pharmacy at the Private Equity Africa awards 2016.