Kenyan private equity firm Fanisi eyes second fund in 2014
NAIROBI Oct 4 (Reuters) - Kenya-based private equity house Fanisi Capital will launch a second fund of at least $100 million before the end of next year to invest in new markets across sub-Saharan Africa, its managing partner said on Friday.
Fanisi's new fund will seek to invest in markets outside of east Africa, where the first fund is focused, Managing Partner Ayisi Makatiani said.
"We may look at DRC (the Democratic Republic of Congo), Ethiopia, Sudan, South Sudan and all the way down to Zimbabwe and Zambia," he said.
Fanisi's first fund of $50 million, a close-ended ten year fund, was launched in 2010 and it has been invested in a high-end private school in the Kenyan capital, a Kenyan chain of retail pharmacy stores, a wholesale pharmacy business and a maize milling firm in Rwanda.
The size of the new fund: "will be driven mostly by the fact that the companies in which we have invested in are continuing to grow," Makatiani said.
Annual growth is expected to exceed 5 percent in Kenya, Uganda, Tanzania and Rwanda this year, the countries in which the first fund is invested, he added.
"Property values in east Africa are getting bigger. The skills set of the team has also improved and so we will be very much naturally fitting into a growth cycle," he said.
Returns from investments in Kenyan property over the decade ended 2011 far outperformed those from other assets like stocks, an independent study showed in 2011. The World Bank published data that year showing annual demand for housing at 250,000 units against a supply of 50,000.
There are 42 foreign and local private equity and venture capital firms investing in east Africa, up from less than 10 a decade ago, Makatiani said.
Among them are Actic, Aureos, Catalyst and Helios.
Fanisi's first fund was backed by the International Finance Corporation, Norfund, Proparco, Finfund, Soros economic development fund and Ludin of Canada.
Fanisi has been investing $2-3 million in firms in agri-business, healthcare, energy, education and retail. It's targeting to invest in a mobile-phone based money transfer business in Uganda, a logistics business in Kenya and an animal feeds producer in Tanzania, Makatiani said. (Reporting by Duncan Miriri; Editing by James Macharia and Elaine Hardcastle)
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