East African SME’s are in for a great time with the recent announcement by the African private equity fund manager Ascent of its  Ascent Rift Valley Fund II (ARVF II) at more than US$100 million, which will be used to invest in small and medium-sized enterprises in East Africa.

The fund manager said ARVF II significantly exceeded its initial target of US$80 million, with the final close of ARVF II, with a target of US$120 million, expected in December 2021. The fund will provide funding to scalable SME businesses, helping to drive wider business and industrial development, particularly targeting the financial services, manufacturing, wholesale and retail trade and services, education, healthcare, and agro-processing sectors. ARVF II has already made its first investment, into financial services, in January 2021.

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Investors in ARVF II include leading Africa investors such as Belgian Investment Company for Developing Countries, the UK’s development finance institution CDC Group, the Dutch entrepreneurial development bank FMO, the International Finance Corporation (IFC), the Norwegian investment fund Norfund, and Proparco, a subsidiary of Agence Française de Développement (AFD).

“We are proud to have raised this additional capital from prominent investors to invest in Africa’s most promising companies,” said David Owino, founding partner of Ascent. “We are now well positioned to become the leading SME fund manager in East Africa, empowering ambitious entrepreneurs with capital and knowledge from our local advisory teams.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Private equity firm Ascent has raised more than $100 million to invest in growth capital in high potential small and medium enterprises (SMEs) in East Africa. 

The investor will target minority and majority acquisitions for amounts between $4 million and $15 million and in sectors such as financial services, manufacturing, commerce, education, health and agribusiness. Ascent will primarily engage in Ethiopia, Kenya, Rwanda, Uganda and Tanzania.

“We are proud to have raised this additional capital to invest in promising African companies. We are now well positioned to become the premier fund manager for SMEs in East Africa, equipping ambitious entrepreneurs with capital and knowledge and guidance from our local teams, ” said David Owino (photo), founding partner of Ascent.

Here Is What You Need To Know 

• The fund manager, who made its first investment in financial services at the start of the year, aims to transform companies targeted by its equity investments into leading companies in the sub-region. 

• It raised this important financing through its second investment fund domiciled in Mauritius — Ascent Rift Valley Fund II (ARVF II) — thus achieving its first closing. The investment vehicle expects to reach $120 million when it is scheduled to close in December 2021.

• Ascent’s second fund follows on from the previous one, which made its first closing at $80 million in 2014 and made 9 investments in East Africa, mainly in Ethiopia, Uganda and Kenya.

• As part of this recent fundraising, the private equity company obtained commitments from several development banks (CDC Group, FMO, Norfund, BIO) and international institutions (SFI, Proparco).

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer