Ascent announces final close of Ascent Rift Valley Fund II

Private equity fund manager Ascent announced the final close of its Ascent Rift Valley Fund II (ARVF II) at more than $128 million, exceeding its initial target of $120 million. The first close of ARVF II was in December 2020.

ARVF II is a 10-year private equity fund managed by Ascent Capital Management Africa II Ltd and is domiciled in Mauritius. ARVF II will invest in designated countries in East Africa, including Kenya, Ethiopia, Uganda, Rwanda and Tanzania.

ARVF II will invest equity in small and medium-sized enterprises (SMEs) in East Africa, looking to take large minority or majority stakes. The targeted sectors include manufacturing, wholesale and retail trade services, financial services, education, healthcare, and agro-processing.

ARVF II has already made three investments to date in the financial and healthcare services sectors. The two recently published investments are Valley Hospital in Nakuru, Kenya and Diani Beach Hospital on the South Coast of Kenya.

ARVF II’s predecessor fund Ascent Rift Valley Fund I, with commitments of $80 million, closed in 2016 and made nine investments in Ethiopia, Uganda and Kenya across a variety of sectors including healthcare, distribution, financial services and manufacturing.

Investors in ARVF II include BIO, BII, FMO, the IFC, Norfund, FISEA (advised by Proparco, France’s development finance institution) and the SDG Frontier Fund, among others.

“We are pleased that the investors, despite the many macro-economic and political challenges facing East Africa and the world at large, have faith in investing in private equity in East Africa,” said David Owino, founding partner of Ascent.

“I am very excited that the investors have given us a strong mandate to continue investing in fast growing SMEs in East Africa,” added Ascent’s founding partner Lucas Kranck.