A Kenyan private equity firm, Catalyst Principal Partners said it raised $155 million in its second round of funding, securing capital from local pension funds and international investors.
Firms like Catalyst are improving the appeal of Private equity, a relatively new financial vehicle on Africa’s landscape, to institutions looking for exposure to fast-growing economies on the continent. The equity firm launched nearly a decade ago with $125 million which it invested in nine companies in Kenya, Tanzania and Ethiopia.
A statement released by Catalyst said the fresh capital will target $7.5 million to $22.5 million range of investments, aimed at companies in Kenya, Uganda, Tanzania, Ethiopia, Zambia, Rwanda and the Democratic Republic of Congo.
Chief Executive of Catalyst, Paul Kavuma, who founded the Mauritius-registered company in 2009 after working for Actis in Kenya and Britain for several years, said “Catalyst largely focuses on emerging and mid-sized companies with strong growth and profitability prospects”.
Catalyst has invested in businesses that provide healthcare, technology, engineering, industrial agro-processing and financial services, as well as companies that manufacture consumer goods and pharmaceuticals.
The company reveals that it invests over a four to six year period by acquiring shareholdings. Catalyst said it targets “businesses in need of expansion and replacement capital, recapitalisations and pre-IPO investments”.