Centum executive changes rise as PE head steps down

Centum has replaced the head of its private equity division, deepening the changes in the executive suite of the investment firm that is increasingly looking to real estate for growth.

The Nairobi bourse listed firm Monday said that David Owino will step down as director in charge of private equity at the end of this month.

He will be replaced by James Kagucia, an executive in the firm’s private equity business and formerly CEO of South Africa’s Kewberg Cables—a subsidiary of investment firm Trans Century.

Mr Owino, 39, has served the firm for 13 years and Mr Kagucia will be the third manager of Centum’s seven member executive-suite to be hired this year.

The executive shifts emerge at a moment when Centum is seeking a piece of the region’s property market and plans to invest Sh2 billion in real estate this year, up from Sh1.5 billion last year in its race to cut reliance on the stock market.

“David voluntarily resigned and he is moving on to pursue personal interests. He has been with us since 2001 and it’s normal for people to move,” said Centum CEO James Mworia in an interview with Business Daily.

“James has 14 years operational experience in business and has been involved in a number of assignments in post-private equity acquisitions, integration and turnaround activities.”

Mr Kagucia joined Centum in March in a year that also saw the investment firm hire Fred Murimi as corporate affairs director from Tatu City, the multi-billion shilling real estate project associated with Renaissance Capital and Graeme Reid, the head of Athena Properties.

Athena Properties is Centum’s real estate and infrastructure firm that is constructing a mall in Kenya and developing properties near Lake Victoria in Uganda.

The changes highlight Centum’s appetite for real estate deals. It’s also comes at a time that the firm has closed a number of deals involving private firms like buying new shares in Coca-Cola franchises as well as majority stakes in micro lender Platinum Credit and Genesis Kenya, a fund management company.

Sources close to Centum reckoned that Mr Owino could be headed to establish his own PE outfit. If this comes to pass, Mr Owino will join a growing list of local executives who have started PE firms including the former TransCentury CEO, Tony Wainaina and Paul Kavuma, who was previously head of private equity at Actis East Africa before establishing Catalyst Principal Partners.

Centum has a portfolio of Sh19.3 billion invested across assets in listed firms, private equity and real estate in Africa.

The firm in 2010 froze dividend payments, citing the need to make further investments in the business with shareholders expected to gain from capital gains.

Its share has been the best performing at the NSE over the past year, gaining 132 per cent over the period to Sh28.