In a bid to assist Small and Medium Enterprises (SMEs) with capital to expand their enterprises, African private equity fund manager Ascent has unveiled the second phase of Ascent Rift Valley Fund (ARVF) worth $101 million (UGX354.923 billion) under a private equity arrangement.
Nevertheless, Ascent states that the final close of ARVF two with a target of $120 million is expected in December this year, which will have a significant impact on companies that will have accessed the funds.
Private equity refers to equity investments in companies not listed on a public stock market. In other words, private equity investors target unquoted, privately-held companies and provide capital to their owners in exchange for a controlling equity stake in the company.
In his speech during the launch of the Fund at its headquarters in Kololo on Tuesday this week, Richard Mugera, the Country Director/Principal said the companies looking for capital need to understand what they need to get the most out of their investment.
Airtel Africa and SpaceX Announce Strategic Partnership to Launch Starlink Direct to Cell Connectivity Across Africa“We want to invest in marketable enterprises who know their strategy,” said Mugera.
Officials say Ascent Rift Valley Fund II (“ARVF II”) is the second investment fund for SMEs in East Africa (Ethiopia, Kenya, and Uganda) raised by the manager Ascent Capital (“Ascent”) and is the successor fund to ARVF I, the first vehicle raised by Ascent in 2014 ($80 million).
Ascent officials have indicated that ARVF two will promote environmental, social, and governance best practices in its portfolio companies to drive growth and value, create quality jobs, limit environmental impact and increase government tax revenues.
