Ascent Capital managing partner David Owino speaks to journalists in Nairobi on July 22, 2014. Photo/SALATON NJAU
What you need to know:
Kenya Power pension scheme, Norwegian private funds investor Norfund and Austrian development bank OEEB have pumped in a total of Sh1.7 billion.
Ascent founding partner David Owino said on Tuesday that the Kenya Power scheme had put in $4 million (Sh352 million) and Norfund $10 million (Sh880 million).
A disclosure note by OEED shows that it has put $5 million (Sh438 million) into the fund.
Local and foreign institutional investors have led a pack of entrepreneurs in pumping cash into the newly set up PE fund Ascent Capital.
Kenya Power pension scheme, Norwegian private funds investor Norfund and Austrian development bank OEEB have pumped in a total of Sh1.7 billion.
Ascent founding partner David Owino said on Tuesday that the Kenya Power scheme had put in $4 million (Sh352 million) and Norfund $10 million (Sh880 million).
A disclosure note by OEED shows that it has put $5 million (Sh438 million) into the fund.
Mr Owino said the fund aims to close its debut fund raising of $70 million (Sh6.14 billion) in December, out of which the four founding partners will raise six per cent of $4.2 million amounting to Sh370 million.
Ascent has so far raised $50 million (Sh4.38 billion), which will be primarily invested in Kenya, Ethiopia and Uganda where the fund has opened offices.
Other than Mr Owino, the other partners are Australian investment banker Guy Brennan, former Nokia executive Lucas Kranck and Germany-based investment manager Florian Pape.
Mr Owino said the fund is targeting at least 10 per cent of the capital from local institutions, primarily pension funds.
“We are targeting at least $7 million from local pension funds, taking in the opportunity brought by the new pension laws which allow them to put in 10 per cent of their holding in alternative investment classes that include private equity,” said Mr Owino.
Other than Kenya Power pension scheme, he said, Ascent recently closed a deal with a second local pension scheme.
Ascent, which is targeting investment in the SME sector, will put funds into a health services company in Ethiopia, a fast moving consumer goods manufacturer in Uganda, and a financial services company in Kenya within the next seven months.
The PE fund will invest between $1 million to $10 million (Sh87 million and Sh870 million) in each company, with the lifetime of the fund’s investment pegged at a maximum of 10 years.
“Ascent will do 10 to 12 deals in the lifetime of this current fund, translating to at most three deals per year over five years,” added Mr Owino.
Ascent plans to seek majority stakes in companies where it is possible. The PE fund has pegged the minimum stake it will hold in investments at 35 per cent.
UN Economic Commission for Africa (Uneca) executive secretary Carlos Lopes said in April that promotion of Africa-owned private equity funds could help stem capital flight from the continent, with non-African PE funds being seen as inclined to repatriate returns.
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