Kenya’s Catalyst Principal Partners starts deploying $125m fund


nairobi_lrgAfter closing its $125m fund in November, Kenyan buyout firm Catalyst Principal Partners is now planning to put the money to work by investing 35 per cent of it in African businesses this year.

Catalyst will focus on companies operating in the consumer, financial and technology sectors as well as industrial businesses, chief executive Paul Kavuma told Reuters.

He noted that the fund made some of its first investments in Tanzania and found some of the most attractive opportunities outside of Kenay, the region’s biggest economy.

The bulk of the funding was provided by the World Bank’s International Finance Corporation, which accounted for 70 per cent of the fund. Other LPs included individual investors, fund of funds and insurance companies.

There are plans to consider raising another fund within the next two years, said Kavuma.

The firm is also looking for real estate projects to invest in with an international property company it has partnered to set up Acre Solutions to take advantage of strong demand for middle class homes in Africa.

The partnership will start with a $40m to $45m residential project, while also working on commercial and residential projects in Kenya that are expected to require $2bn in the next decade.

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