New equity fund targets SMEs

Ascent, a Kenyan private equity firm, has raised Sh4.3 billion ($50 million) for investment in growth enterprises across Eastern Africa.
The company management said the money will be invested in 12 fast-growing small and medium companies in Kenya, Uganda and Ethiopia.

Ascent capital advisory services partner, David Owino, announced during the launch of the fund that the size of the investment in the said companies will be between Sh87 million and Sh870 million (US$1 million and US$9 million).
Owino lauded the local pension funds regulatory body, Retirement Benefit Authority (RBA), for allowing pension funds to invest in the private equity asset class.
He said the alternative asset class presents the pension funds with exciting investment options in untapped markets. "This is the first time in the region that local pension funds have committed to invest in a private equity fund," explained Owino.
Private equity is still a relatively new development on Africa's financial landscape. The sector has been growing in recent years, as investors chase higher returns from the robust private class assets.
Ascent said the fund, is backed by private and institutional investors from Kenya and abroad, including Kenyan pension funds. It has offices in Kenya, Uganda and Ethiopia.