PE Phatisa raises Sh12bn for food chain investment

African private equity (PE) fund manager Phatisa has announced the first close of the successor to the African Agriculture Fund (AAF)—Phatisa Food Fund 2 (PFF2)—after raising $120 million (Sh12 billion).

The funds sourced from international investors will be invested in Africa’s food value chain.

Established in 2005, Phatisa is a continent resident fund manager operating from offices in Kenya, Cote d’Ivoire, South Africa, Mauritius, Zambia, and an office based in London.

Phatisa said it will continue closings and expects to reach a final close target of $300 million (Sh30 billion) by mid-2019.

“We are delighted to achieve this milestone. Re-investments from our first fund account for 88 per cent of commitments, demonstrating strong support from AAF investors,” said Stuart Bradley, Phatisa joint managing partner. He said the fund has continued to attract the private sector, with a 70:30 split between commercial investors and development finance institutions at first close.

“With this round, we have now raised more than $400 million (Sh40 billion) for the African food and housing sectors,” said Mr Bradley.

The PFF2 is considering investments in mechanisation, inputs, poultry and meat production, food processing and manufacturing, logistics, aggregation and distribution across sub-Saharan Africa. It is targeting buy-outs and expansion transactions with an investment size of between $15 million (Sh1.5 billion) and $25 million (Sh2.5 billion).

In 2016, Phatisa was developing housing projects in Kenya.

The firm together with Africa Reit had two developments in Nairobi’s Westpoint Heights and 72 Magadi Road.

It had also partnered with In-Time Capital Limited to construct a 14-storey residential apartment block in Westlands.

In Nakuru, Phatisa was building 140 units of semi-detached townhouses and maisonettes in a deal with Tamarind Properties.