PE fund raises Sh30bn from Europe firms

Money Markets

TransCentury chairman Zephaniah Mbugua (left) with the MD Gachau Kiuna. Aureos is set to own 2.2 per cent shares of infrastructure investment firm TransCentury. Photo/FILE 

By John Gachiri

In Summary

• Amethis said it raised the money from US, European financial institutions and family-owned businesses with a keen interest in investing in local firms.

A French private equity firm and one of the largest shareholders in Chase Bank has raised $350 million (Sh30 billion) for investing in fast-growing firms in Africa.

Amethis said it raised the money from US, European financial institutions and family-owned businesses with a keen interest in investing in local firms.

“The success of this fundraising, demonstrates the appetite of private European and US entrepreneurs and family offices to invest in Africa, the next world frontier for growth,” said Amethis managing partner Luc Rigouzzo in a statement.

 

Growth in Kenyan and regional small and medium-sized enterprises has attracted funds from private equity and related firms, eyeing rich harvests as companies mature.

Last month, private equity firm Kibo Capital Partners raised Sh4.38 billion for its second SME fund.

Kibo bought a fifth of I&M Bank (Tanzania) shares in January 2010 through the Kibo I fund.

Amethis invests long term through debt or by buying out minority shareholders. The private equity firm prefers to invest in mid-size companies that are expanding and are serving markets that are poised for takeoff.

“The Chase Bank transaction fits perfectly with Amethis strategy to support mid-size fast growing local companies, targeting institutionalisation and regional expansion,” said the private equity firm in March last year when it invested in Chase Bank.

The purchase of a stake in Chase Bank worth $10.5 million (Sh920 million) was also the private equity fund’s first investment.

The firm began in December 2012 and is owned by institutional and family-owned business.