The International Finance Corporation (IFC) is set to invest Sh10.4 billion (€70 million) in Pan-African fund manager Amethis Fund III for onward capital deployment in mid-sized companies in Africa including Kenya.
IFC said it will place an equity investment of Sh5.94 billion (€40 million) into the fund and Sh4.45 billion (€30 million) as co-investment from a pool of other financiers.
This is because the financier cannot exceed 20 percent of the total committed capital in the fund.
“The proposed project is an equity investment of up to €40 million into Amethis Fund III (Fund III or the Fund), a Pan-African private equity (PE) fund, and a €30 million co-investment envelope,” said IFC.
Amethis III is the third fund of the French Amethis franchise in the Middle East and North African regions.
IFC said the investment will be used to finance and buy out 10 to 12 mid-capitalisation companies in the continent.
The international financier’s equity investment will be invested through the purchase of shares of the fund with expected dividends.
“The fund is targeting to raise €450 million to pursue growth capital and buyout investments in 10-12 mid-cap companies across Africa. The Fund will invest in various sectors including healthcare, non-banking financial institutions & services, business services (including logistics & IT), manufacturing and distribution,” said IFC.