PE firm Ascent raises Sh8bn for new fund

Money Markets

Ascent Capital managing partner David Owino. PHOTO | FILE 

By JOHN GACHIRI

In Summary

• Ascent has raised the funds from foreign investors and local pension funds including Kenya Power Pension Fund and Nation Media Group Pension Fund, both of which contributed a combined Sh500 million ($5 million).

Private equity firm Ascent Capital has raised slightly more than Sh8 billion ($80 million) for its debut Ascent Rift Valley Fund.

The Ascent Rift Valley Fund has closed having exceeded the initial $60 million (Sh6 billion) target that was set in July last year when the fund was first launched.

Ascent has raised the funds from foreign investors and local pension funds including Kenya Power Pension Fund and Nation Media Group Pension Fund, both of which contributed a combined Sh500 million ($5 million).

Development financiers CDC of the UK, FMO (the Netherlands), Norfund (Norway), and OeEB (Austria) have also contributed to Ascent’s first fund.

The funds give Ascent enough cash to shop for viable companies to invest in.

Ascent invests in growing companies that can be scaled up. It operates in Kenya, Uganda and Ethiopia.

The firm’s management expects to conclude talks on investing in two more companies in the next few weeks.

“We are at an advanced stage of closing two more deals and we are looking to announce these by the close of the year,” said Ascent managing partner David Owino.

So far, Ascent has invested in Medpharm Holdings Africa, an Ethiopian diagnostic laboratory, and Uganda’s Chims Africa Ltd, a company that operates a chain of 130 MTN mobile money agencies in Uganda.

READ: Ascent Capital buys stake in Ugandan-based MTN agency

The investment in Medpharm Holdings was worth Sh250 million ($2.5 million) but the amount the private equity injected into Chims Africa was not disclosed.

The private equity sector has been active, driven by both foreign and local firms.

Data by Burbidge Capital shows that the private equity firms have been involved in 18 local deals this year worth at least $953 million (Sh100 billion) in declared value.

“Favourable demographic dynamics, stable macroeconomic fundamentals, technology-driven products, increase in disposable income and structural gaps in supply and demand have created attractive investment opportunities in the financial services sector,” said the report by Burbidge Capital.

Ascent Capital was founded by Mr Owino, a former senior executive at Centum Investments, together with Australian investment banker Guy Brennan and former Nokia executive Lucas Kranck.

Fanisi Capital and Cytonn Investments are other private equity firms that have been set up by Kenyan executives.

A former senior TransCentury executive and pioneer Internet entrepreneur Ayisi Makatiani set up Fanisi Capital while Edwin Dande, who was previously managing director at British American Asset Managers, was among the founders of fast-growing Cytonn Investments.