Catalyst Fund II raises the $ 155 million acquisition fund for investment in East Africa



NAIROBI, KENYA, 9 NOVEMBER – Fund Manager for East Africa, Catalyst Principal Partners, announced the end of its second fund and reached $ 155 million.

This is 15.5 billion Ksh of the capital commitments of leading international and regional investors, as the successor to the Catalyst Fund I fund, which was invested in $ 125 million in 2009.

With the launch of its second fund, Catalyst consolidates its position as Regional Investment Manager, the regional fund manager, with the largest fund of funds managed among its peers dedicated to the East African region.

With more than 80% of international institutional investors in Catalyst Fund II, which have already been investors in their first fund, Catalyst has increased the investment commitments of its existing investors by more than 30% and attracted capital from new international and regional investors, including local pension funds and family authorities.

According to Catalyst CEO Paul Kavuma, increased investment by international institutional investors is a sign of confidence in the economic potential of the East African region.

Data from the United Nations Conference on Trade and Development (UNCTAD) show that the East African region represented 18% of African FDI in 2017.

"Given that the Catalyst Principal Partners is a leading East African fund investing only within the region, the increased interest of international institutional investors is an indicator of their confidence in the strong fundamentals of the regions. The East African region is the fastest growing region of the continent of GDP, a factor that is still attracting investors, "Mr. Kavuma said.

With its commitment from regional investors, which increased by 50% for Catalyst Fund II, the emergence and mobilization of local capital brands reached the age of regional private equity.

The East African community and Deputy Prime Minister for Regional Development Adan Mohamed, who officially chaired the suspension of Catalyst Fund II, noted that regional private equity has been booming over the years, with more companies showing an interest in developing regional economies.

"It should also be noted that regional investors, including pension funds, represent almost 20% of the commitments entered into under the Catalyst II Fund, a clear indicator that the region can not only absorb funds and ensure return on investment, but that the region can also raise funds for own development, "CS. Posted by Adan.

He said the Kenyan government will continue to implement reforms aimed at improving the local business environment while also striving to conclude trade agreements and blocks that expand the market for local companies.

This includes the CFTA agreement signed at the beginning of this year by 44 countries and generating a wider market of over 1.2 billion people with a combined GDP of $ 2.19 trillion.

"Creating this market will enable the continent to deepen intra-African trade while creating opportunities for growth for medium-sized enterprises." PE funds such as Catalyst will have significant potential for SMEs to take advantage of this market. invests in infrastructure both locally and as part of the East African community through initiatives such as the North Corridor project that facilitates interconnection for business, "he said.

Catalysis CEO Kavuma noted that increased interest in the region is largely influenced by political reform, investment in infrastructure, regional integration and harmonization.

"The catalyst is very focused on emerging and medium-sized companies with strong growth and profitability prospects. The growing appetite both from international and regional investors in the private equity investment class demonstrates that East Africa is not only an attractive investment opportunity but that private capital offers credible and innovative solutions to finance ambitious companies and entrepreneurs looking for the necessary venture capital to boost growth and improve performance, "Kavuma added.

In 2009, Catalyst Fund I received $ 125 million, which invested 9 companies in Kenya, Tanzania and Ethiopia with various interests in the production of consumer goods, pharmaceutical products, industrial processing of agricultural products, logistics and engineering, as well as healthcare, technology and financial services.

Catalyst Fund II will invest between US $ 7.5 million and US $ 22.5 million for emerging mid-market players within East Africa, in a key growth sector that will respond to ever-demanding consumer demands and will support favorable regional fundamentals .

The Fund will focus on Kenya, Uganda, Tanzania, Ethiopia, Zambia, Rwanda and the Democratic Republic of Congo.

Catalyst Principal Partners invests in the six-year investment horizon by participating in a significant stake, targeting businesses that need capital expansion and replacement, recapitalization, and IPO investment.

Through Catalyst Fund II, Catalyst Principal Partners strives to expand the impact and impact of private equity funds across the region, allowing more businesses access to innovative financing solutions while offering value beyond capital for the development of leading regional champions.

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