Earlier today, Catalyst Principal Partners, a private equity firm based out of Kenya has raised $155 million its second round. The private equity firm raised its funding from international investors and local pension funds.
The country is still relatively new into private equity. However, Catalyst Principal Partners are helping to grow its appeal in the country. This move would be appealing to an institution for fast-growing economies in Africa.
Catalyst was launched around a decade ago with a fund of $125 million and has invested in 9 companies in Ethiopia, Tanzania, and Kenya. The company mainly focuses its investment in East Africa.
In a statement, the company stated that it would have an investment size of around $7.5 million-$22.5 million in companies in Democratic Republic of Congo, Ethiopia, Kenya, Tanzania, Zambia, Rwanda, and Uganda,
Paul Kuvuma, the company’s CEO stated that they are focusing on making an investment in mid-sized companies which have a strong growth potential.
Kuvuma, founded Catalyst in 2009 which is registered in Mauritius after working in Actis in Kenya and Britain for many years.
The company has its investment in companies which manufacture pharmaceuticals, consumer goods, industrial agro-processing, engineering, and logistics. The company has also invested in technology, financial services, and healthcare companies.
The investment time frame is for a period of four to six years by acquiring the company shares. The firm typically targets a business that requires capital for expansion and replacement capital. Also for companies which require pre-IPO investments.