Private Equity firms Fanisi Capital and Ascent Capital to merge

Private equity firms Fanisi Capital and Ascent Capital have agreed to consolidate the operations of their respective funds, a move that is aimed at scaling up so as to yield higher returns for investors in the two firms’ funds.

Under the transaction both Fanisi Capital and Ascent Capital will systematically co-invest to achieve scale benefits and improved returns to the fund’s investors held under the Fanisi Capital Fund II LLC (“Fanisi II”) and Ascent Rift Valley Fund II LP (“ARVF II”)- a statement from the two firms says.

 The Fanisi Fund II is a US$ 35 million growth capital private equity fund launched in 2017 while the ARVF II is expected to raise $120 million upon its first close in 2020.

“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,” said Ayisi Makatiani and Tony Wainaina, the two Co-Managing Partners of Fanisi in a statement.

Fanisi has made private equity fund investments in SMEs in East Africa since 2010 and Ascent is a leading SME fund manager in East Africa and will manage the ARVF II upon its first close in 2020.

“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,” said David Owino, Founding Partner, Ascent Capital.

The transaction is expected to be finalized in the first quarter of 2020 subject to relevant approvals. Notably, the transaction will not affect investments already made by Fanisi II.

Additionally, the investments made under the two firms first funds will continue to be managed separately.

Some of the previous investments made by Fanisi include Kitengela International Schools, Hillcrest International Schools, Ngare Narok Meat Industries Limited while Ascent has invested in Kisumu Concrete Products and Kampala-based African Queen Distributors.