Markets & Finance

Equity’s part owner Helios raises Sh100bn for continent

EQTY

Helios, the single-largest shareholder in Equity Bank, owned nearly a quarter of the lender’s stock. The firm has sold half its stake to two Norwegian funds. FILE PHOTO |

Helios, a Pan-African private equity firm, has raised $1.1 billion (Sh100 billion) — one of the largest amounts ever — for an Africa-focused fund.

Helios III fund said it had managed to raise $1.1 billion, 10 per cent more than the $1 billion (Sh91 billion) targeted.

The equity firm is the single-largest shareholder in Equity Bank, owning nearly a quarter of the lender’s stock.

Other investments include a $40 million (Sh3.6 billion) investment in Wananchi Group made in October 2013 and a 40 per cent stake in Vivo Energy made in 2011.

The firm’s management said over-subscription of the fund was due to demand from institutional investors who want exposure to African companies.

“Achieving, and exceeding, our fund-raising target for Helios III underscores the global demand for experienced, institutional, Africa-focused private equity specialists and the strength of the relationships we have built with the world’s leading private equity investors,” said Helios investor relations partner Dabney Tonelli in a statement.

READ: Helios buys stake worth Sh3.6bn in Wananchi Group

Helios co-founder and managing partner Tope Liwani said the company would invest in businesses whose core work is in the supply side of the economy.

“Helios’ strategy focuses on investing in businesses that lead the provision of core economic infrastructure: de-bottlenecking the economy, increasing efficiencies, and reducing living costs for households and operating costs for businesses,” said Mr Liwani in a statement.

The private equity firm invests between $30 million (Sh2.7 billion) and $200 million (Sh18 billion) in each company.

The firm’s previous fund raised $900 million in July 2011. Helios is the latest firm to raise cash solely to invest in African companies.

The Africa Renewable Energy Fund, based in Nairobi and managed by Berkeley Energy, is raising Sh18 billion to invest in companies producing power.

Amethis Finance raised $350 million (Sh31.5 billion) in June 2014 to invest in fast-growing companies in Africa and recently bought a 30 per cent stake in Ramco Plexus, a subsidiary of Ramco Group in a deal announced last month.

Ascent Capital, a firm managed by former Centum executive David Owino, raised Sh4 billion from local and foreign investors in July 2014.