Centum Commits KSh 5b to Expand its Private Equity Portfolio in East Africa

Centum Commits KSh 5b to Expand its Private Equity Portfolio in East Africa

Centum Capital Partners intends to acquire three companies in Kenya and two others in the region over the next five years

The company said it is scouting for already profitable businesses that are looking for growth capital

This comes amid the firm’s recent exits from Almasi Beverages, UAP Insurance and Kenya Wine Agencies Limited

Centum Investment Group is set to acquire five undisclosed companies, spread across diverse sectors in the region. Centum sets aside KSh 5b to expand its private equity portfolio. According to its subsidiary Centum Capital Partners, the investment group intends to invest up to KSh 5 billion over the next five years in the acquisitions.

The company said it is interested in already profitable business es looking for growth capital or where the business owners want to cash in on their equity investment.

Fred Murimi, a Managing Partner at Centum Capital Partners, told Business Daily that three of the targeted firms are based in Kenya while the other two are in neighbouring countries.

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Currently, the investment firm’s private equity portfolio is worth an estimated KSh 9 billion across the East African region, with stakes in Longhorn Publishers, Isuzu East Africa, Nas Servair and Sidian Bank .

Its notable exits in the recent past include Almasi Beverages, UAP Insurance and Kenya Wine Agencies Limited. “We are building a promising pipeline of deals, we’re in talks with a number of investee targets that we hope to conclude in the coming months,” said Murimi said. COVID-19 Impact

The company’s intended acquisitions come when many companies are still reeling from the impact of the COVID-19 pandemic.

According to the Impacts of COVID-19 Crisis on Private Equity Funds in Emerging Markets report by the International Finance Corporation (IFC) , private equity funds are being hit by the reduction in activity and growth prospects of their portfolio companies.IFC reveals that demand shocks on reducing income availability and supply shocks disrupting the global value chain have impacted entire business lines and sectors.These include light manufacturing and urban consumer businesses, which represent a large share of the investments of Growth Equity funds. “Private Equity Fund Managers’ priority is currently to shore up portfolio companies by using the funds’ cash reserves where possible and by providing hands-on operational support,” IFC noted. In the short term, the report indicates that private equity funds’ returns will take […]

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