Ascent, an equity firm based in Nairobi, Kenya, with an office in Ethiopia, is going to sign a final deal to pump additional investments in a company involved in the health sector.
Officials of the company however declined to reveal the amount of money or the name of the health institution. Michael M. Selassie Principal and Country Director of Ascent for Ethiopia told Capital that his firm will finalize the deal in the coming two weeks. “We have a confidentiality agreement, so we will not tell the amount we are injecting or the name of the company, however we will announce the deal in two weeks,” Michael said.
He also mentioned that another deal is in the pipeline, which will be finalized in the coming three to four months. He also refrained from stating the company and the money they are going to inject.
According to the partners of the private equity fund Ascent, the firm will be looking to pump money in small and medium enterprises (SMEs) across the East African region.
The firm raised USD 50 million recently to be invested in enterprises in Kenya, Uganda and Ethiopia.
The firm also announced that it will provide hands-on expertise to businesses pursuing long term growth ambitions under the Fund’s 10 year lifespan, which literally converts so that it will sell back the shares it bought after 10 years.
The firm also announced that it will focus on the manufacturing sector that produces fast moving consumer goods and service businesses. Other areas of interest include medical services, distribution operations, oil and gas plus Information and Communications Technology (ICT) sectors.
While high population growth of 3.2 per cent per year and proximity to large neighbouring markets like South Sudan and the Democratic Republic of Congo (DRC) has created big opportunities for fast moving consumer goods like soft drinks in Uganda and more sophisticated industrial operations bases in Kenya that have equally attracted investors keen on efficiency and stable returns on investment, according to various media outlets.
The Fund offers a 20 percent return on investment per year while transaction sizes range between USD 2 million and USD 10 million.