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Fanisi gets Sh3bn pledges in round two fundraising


Ayisi Makatiani, Fanisi Capital managing partner and chief executive. PHOTO | SALATON NJAU | NMG

Private Equity (PE) firm Fanisi Capital has received commitments worth Sh3 billion in the first phase of its round two capital raising to fund small and medium sized enterprises.

Fanisi Capital Fund II, a close-ended 10-year SME venture fund, has a target of between Sh7.5 billion and Sh10 billion in the next 12 months.

Fanisi Capital managing partner and chief executive Ayisi Makatiani Wednesday said the fund-raising had seen strong interest from local investors, accounting for 45 per cent, with the rest coming from international investors.

“We got eight local pension funds investing in this round, which is a big move for us. As a Kenyan-based PE firm it is a great milestone for us to launch a second fund,” said Mr Makatiani during an investor briefing in Nairobi.

“We are optimistic about the market and growth in our industry.”

The eight schemes are Kenya Power #ticker:KPLC, Kenya Ports Authority, Laptrust, Barclays #ticker:BBK, Kenya Railways, Alexander Forbes, Co-operative Bank #ticker:COOP and NSSF.

The PE firm, which is 75 per cent owned by its founding investment team led by Mr Makatiani with the remaining 25 per cent held by Norwegian fund Norfund, will use the new monies to consolidate gains made by the first fund.

READ: IFC to inject Sh750m into Fanisi Capital fund for SME investment

The firm has investments in Kenya, Rwanda, Tanzania and Uganda.

Its first phase, Fanisi Fund 1, which is fully invested, was worth Sh5 billion fund.

It was invested in various businesses including Haltons Pharmacy, Hillcrest International Schools, Ngare Narok Meat Industries, ProDev Group Holdings, Sophar Ltd in Rwanda, and Kijenge Animal Products Ltd in Tanzania.