29 November 2016
Promoter – Financial Intermediary
Catalyst Capital Partners
The operation consists of a commitment to a private equity fund targeting small and medium-sized enterprises (SMEs) and small mid-sized companies active in East Africa.
The proposed operation concerns a participation in Catalyst Fund II, a closed-end private equity fund with a target size of USD 175m. The fund will be set up to make privately negotiated equity and equity-related investments in SMEs and small mid-sized companies active in East Africa, with a focus on Kenya, Tanzania, Ethiopia, Uganda, Rwanda, Zambia and the Democratic Republic of Congo. Its principal objective consists in acquiring majority and/or significant minority stakes in businesses with significant growth potential.
The manager will seek to create value through a hands-on management approach, driving the growth and profitability of investee companies and enhancing enterprise skills, governance as well as environmental and social standards.
Catalyst Fund II is the successor fund to Catalyst Fund I, a USD 123m vintage 2011 fund to which the EIB committed USD 12.5m and which is now fully invested.
Proposed EIB finance (Approximate amount)
USD 18 million (EUR 17 million)
Total cost (Approximate amount)
USD 175 million (EUR 165 million)
The fund's operational guidelines provide for environmental and social due diligence of investee companies according to guidelines acceptable to the Bank.
Signed - 20/03/2017