The cash was raised from the World Bank Group’s private sector arm, the International Finance Corp (IFC), the UK government-owned finance agency, the CDC Group, Dutch development financier FMO, and the French development finance institution
Ascent said it will invest between Sh537 million and a maximum of Sh2.1 billion in firms across growth sectors like financial services, manufacturing, trade, education and health sectors in Kenya, Ethiopia, Uganda, Tanzania and Rwanda.
Nairobi-based private equity (PE) firm Ascent Capital has raised from $100 million (Sh10.7 billion) from the World Bank and top sovereign funds for acquiring stakes in local companies across Eastern African.
The cash was raised from the World Bank Group’s private sector arm, the International Finance Corp (IFC), the UK government-owned finance agency, the CDC Group, Dutch development financier FMO, and the French development finance institution, Proparco alongside other high net worth investors.
Ascent said it will invest between Sh537 million and a maximum of Sh2.1 billion in firms across growth sectors like financial services, manufacturing, trade, education and health sectors in Kenya, Ethiopia, Uganda, Tanzania and Rwanda.
It will seek majority or significant minority ownership in the targeted companies, suggesting it requires say in the boardroom of the firms.
“We are looking and have seen interesting opportunities. The market is still there for investors chasing a return and funds are available for businesses that are looking for equity partners to work with them,” said Ascent Capital founding partner David Owino.
CDC contributed $25 million (Sh2.68 billion). A breakdown of the rest of the parties’ contribution was not immediately available. Kenyan pension funds deployed about Sh1.3 billion in the fund, according to Mr Owino.
Founded in 2012 by three partners including Mr Owino who had cut his deal making skills at the listed Centum Investments.
It targeted small and mid-sized firms, breaking the market norm where most PE funds eye stakes in small companies opted for passive, minority stakes.
It has invested in a broad range of sectors in Ethiopia, Kenya and Uganda usually through transactions ranging between Sh201 million ($2 million) and Sh1.5 billion ($15 million).
Mr Owino said the latest fundraising will help medium sized businesses in Kenya strengthen their capital structures, improve their governance and scale up.
“We want to take significant stakes in the businesses we invest in. If we can take a controlling stake of more than 51 per cent we are okay. If we get a minority stake we are also okay but it must be a significant minority. Our idea in investing is to grow the company to become a mid-cap company,” Mr Owino said.
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