Kenyan private equity firm raises $155m in second round funding

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NAIROBI (Reuters) – Catalyst Principal Partners, a Kenyan private equity firm, has raised $155 million in its second round of funding, securing capital from local pension funds and international investors, it said on Friday.

Private equity is still a relatively new financial vehicle on Africa’s landscape but firms such as Catalyst are helping to grow its appeal to institutions looking for exposure to fast-growing economies on the continent.

Catalyst, which focuses on investments in East Africa, launched nearly a decade ago with $125 million which it invested in nine companies in Kenya, Tanzania and Ethiopia.

The fresh capital will target $7.5 million-$22.5 million range of investments, aimed at companies in Kenya, Uganda, Tanzania, Ethiopia, Zambia, Rwanda and the Democratic Republic of Congo, Catalyst said in a statement.

“Catalyst largely focuses on emerging and mid-sized companies with strong growth and profitability prospects,” said Paul Kavuma, the chief executive of Catalyst.

He founded the Mauritius-registered Catalyst in 2009 after working for Actis in Kenya and Britain for several years.

The firm has invested in businesses in the manufacture of consumer goods, pharmaceuticals, industrial agro-processing, logistics and engineering as well as healthcare, technology and financial services, it said.

It typically invests over a four to six-year period by acquiring shareholdings “targeting businesses in need of expansion and replacement capital, recapitalisations and pre-IPO investments.”

Reporting by Omar Mohammed; Editing by Duncan Miriri and David Evans

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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