The second close of East African Catalyst Fund has achieved $155 Million

The second close of East African Catalyst Fund has achieved $155 Million

With commitments from regional investors increasing by a factor of 50 per cent for Catalyst Fund II, the emergence and mobilization of local capital marks the coming of age of the regional private equity industry.

 The first Catalyst Fund raised to $125 million which it invested in 9 companies in Kenya, Tanzania and Ethiopia with diverse interests in manufacturing of consumer goods, pharmaceuticals, industrial agro-processing, logistics and engineering as well as healthcare, technology and financial services.

 In launching its second fund, Catalyst cements its position as the leading regional private equity fund manager with the largest pool of funds under management amongst its peers dedicated to the East African region.

 This is about Ksh 15.5 billion of capital commitments from leading international and regional investors, as a successor to Catalyst Fund I, a $125 million fund raised in 2009.

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

 The Catalyst Principal Partners is the leading Eastern Africa focused fund investing only within the region, increased interest by International Institutional investors is an indicator of their confidence in the regions strong fundamentals. The East African Region is the continent’s fastest growing region by GDP, a factor that continues to attract investors.

 East African Community and Regional Development Cabinet Secretary Adan Mohamed who officially presided over the Catalyst Fund II closure noted that the regional Private Equity subsector has shown tremendous growth over the years, with more firms expressing interest in the development of regional economies.

 The creation of this market will enable the continent to deepen intra Africa trade while at the same time creating growth opportunities for mid-size companies.