Rwanda’s largest financial institution BK Group Plc has established a US$30-40million private equity vehicle targeting strategic investments in high-growth small and medium-sized enterprises (SMEs) across Rwanda and the East African Community (EAC), in partnership with Advanced Finance and Investment Group LLC (AFIG Funds).
- •The Rwanda Rise Fund will be managed by a newly established General Partner, AFIG BK Partners, incorporated in Rwanda, of which BK Group owns 55% and AFIG 45%.
- •AFIG will lead international capital mobilization, legal structuring (PPM, LPA), and chair the Investment Committee, while BK Group will spearhead local deal origination, regulatory registrations, and Rwandan LP engagement through its corporate banking and capital markets arms.
- •This is one of two major capital moves BK Group is undertaking in 2025 — the second being a merger between BK General Insurance and Sonarwa entities to form a composite insurer. Read More.
According to the shareholder circular dated April 29, 2025, the Rwanda Rise Fund will target SMEs in six key sectors: agriculture, manufacturing, ICT, tourism, renewable energy and financial services.
The fund will follow a 20% carried interest structure, triggered after achieving an 8% preferred return for investors, and management fees and GP operating expenses will be shared pro rata based on the equity split.
Its investment committee will comprise of 3 members form AFIG, one of whom will be a non-voting chair, 2 members from BK Group, and 1 independent expert.
