Fanisi Capital will receive technical advisory services from the International Finance Corporation (IFC) in a 108 million shillings deal.
The advisory project, which will help the private equity firm to invest in small and medium-sized (SMEs) firms in Kenya, is dubbed SME V Fanisi, and is expected run until November 30, 2022. The major aim of the deal is to ensure Fanisi Capital sells some its portfolio companies.
Fanisi has about $100 million in assets under management including investments in scores of SMEs such as Kenya’s retail pharmacy chain Haltons, outdoor advertising firm Live AD and Ngare Narok Meat Industries.
The company says it has a policy of exiting its investments within three to six years though sale to strategic buyers or secondary buyouts and initial public offerings. Planned exits are, however, dependent on availability of buyers and attractiveness of the companies to be offloaded.
A statement released by IFC said “SME V Fanisi will provide support to the fund (Fanisi) by supporting portfolio value creation and exits of the remaining deals under Fund I. For Fund II, this advisory project will provide resources to support SME access to the fund opportunity, guide on better deal generation and structuring for Fund II, and focus on investment strategy, team capacity, and pipeline development”.
IFC added that the technical assistance for the fund would also support Fanisi’s portfolio value creation for overall performance.