Private Equity companies Fanisi Capital and Ascent Capital have disclosed plans to consolidate their funds with the aim to earn higher returns for their investors. According to a joint statement, Fanisi and Ascent will systematically co-invest to enjoy scale benefits and earn better returns to investors’ funds held under the Fanisi Capital Fund II LLC (“Fanisi II”) and Ascent Rift Valley Fund II LP (“ARVF II”) .
Fanisi Fund II was launched in 2017 and is a $35 million (KSh3.5 billion) private equity fund. On the other hand, Ascent Rift Valley Fund II is projected to raise $120 million (KSh12 billion) after its first close in 2020.
Ascent Capital Africa is a top SME fund manager in East Africa with roughly $80 million worth of assets under management. Some of the projects the fund has invested in are; Kisumu Concrete Products and African Queen Distributors.
Fanisi Capital, an East Africa focused SME fund manager, has managed two funds with a combined value of $78 million.
In a statement, the two Co-Managing Partners of Fanisi, Ayisi Makatiani and Tony Wainaina said, “The Ascent team is highly experienced and respected in the market for East African SME investments. As the Transaction progresses, we expect benefits of scale and more robust investment returns to the Fanisi II investors over time.”
According to David Owino, Founding Partner, Ascent, “The ARVF II strategy and philosophy is very well aligned with that of Fanisi II. We are confident that the partnership between the two funds will bring scale and value for all investors, whether of Fanisi II or ARVF II.”
The union of the two Private Equity Funds is expected to be completed by the end of first quarter of 2020 subject to relevant approvals.
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