IFC to inject Sh750m into Fanisi Capital fund for SME investment
Fanisi Capital managing partner and chief executive Ayisi Makatiani. PHOTO | FILE
What you need to know:
IFC is making its second financing commitment to Fanisi having invested a similar amount in the PE fund’s initial capital raise in 2010.
The International Finance Corporation (IFC) plans to inject Sh750 million into PE firm Fanisi Capital’s new fund, which is targeting between Sh7.5 billion and Sh10 billion for SME investment.
IFC, the World Bank’s private sector lending arm, is making its second financing commitment to Fanisi having invested a similar amount in the PE fund’s initial capital raise in 2010. It expects to complete the investment at the beginning of November.
Fanisi is hoping to close its second fund — dubbed Fanisi Capital Fund II LLC — by end of the year.
The first fund raised $43.5 million (Sh4.3 billion) in 2010, which the PE firm put in investments in healthcare, education, consumer goods and agribusiness.
“The project proposes an IFC equity investment of up to $7.5 million, not to exceed 20 per cent of total committed capital, in Fanisi Capital Fund II LLC, a 10 year closed-end SME ventures fund targeting growth oriented SMEs in East Africa… in the four sectors of agribusiness, retail consumer, healthcare and education,” said IFC in disclosure documents on the proposed capital injection.
Fanisi is currently 75 per cent owned by its founding investment team that is led by managing partner and CEO Ayisi Makatiani, with the remaining 25 per cent held by Norwegian fund Norfund.
Fanisi typically invests between $50,000 (Sh5 million) and $15 million (Sh1.5 billion) in companies for periods of between three and six years.
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