Fanisi Capital has launched its second fund, Fanisi Capital Fund II, with a target of between USD75 million and USD100 million.
Fanisi Capital Fund II, which is a close-ended 10-year growth fund, is targeting to raise up to USD40 million locally, with the rest coming from international investors.
Fanisi Capital managing partner and CEO Ayisi Makatiani says several leading pension funds have already committed to putting money into the fund. He says the strong interest from local investors, including key institutional investors, is underpinned by Fanisi Capital’s vast experience in the local and regional markets.
“We are essentially involved in building African businesses and African value chains, and have done so successfully in the past. This is why local investors are especially keen to put money into our fund,” says Makatiani.
The proceeds from Fanisi Capital Fund II will be used to sustain the momentum that Fanisi Capital has garnered across East Africa in high growth sectors such as healthcare, agri-business, retail (fast moving consumer goods) and education. The private equity firm will mainly invest the funds in Kenya, Rwanda, Tanzania and Uganda.
Fanisi Capital Fund II is set to close by the end of the year with an initial amount of about USD30 million, making it the first indigenous Kenyan fund manager to close a second fund for the regional market.
It comes on the back of a successful Fund I, which raised USD50 million and launched in 2010. Fund I was fully invested in 2015.
Tony Wainaina, who is also the managing partner of Fanisi Capital alongside Makatiani, says Fund II would help consolidate the gains made with Fund I.
“Fanisi Fund II will essentially build on the success of Fund I, allowing us to positively impact even more African businesses and help drive the regional economy forward,” says Wainaina.
Fund I was invested in various businesses, including Haltons Pharmacy, Kijenge Animal Products in Arusha, Tanzania, ProDev/Minimex Group in Rwanda and European Foods Africa Ltd (EFAL) among other investments in the region.
