KAMPALA- Regional private equity fund, Aureos East Africa Fund LLC, has started the process of exiting its investments in East Africa.
The fund which was established by Aureos Capital in 2003, had made several investments in Kenya, Uganda and Tanzania.
Its key sectors included banking, manufacturing, tourism, advertising, wholesale and retail.
Recently, the fund which is managed by the Abraaj Group announced that it had entered into an agreement to sell its entire 5.53 per cent (6.83 million shares) stake in the clothing retailer Deacons East Africa Plc.
The value of the transactions is yet to be made public but conservative estimates based on the current market value of the company’s stock on the Nairobi Securities Exchange puts the price at around $240,000 (Shs86.7m).
The fund has also invested in the cement firm Athi River Mining, Bank of Africa, Athi River Steel Plant, Cable Holdings Ltd, Dorini (Tourism) and advertising firm Ovidian.
In Uganda and Tanzania, the fund has invested in the Bank of Africa (Uganda) and Bank of Africa (Tanzania).
The $40 million(Shs144b) fund is incorporated in Mauritius and seeks to make equity and quasi-equity investments in small and medium-sized enterprises with strong potential for profitable growth and regional expansion.
Aureos seeks to invest in East Africa with a focus on Kenya, Tanzania and Uganda, with investments of between $0.5 million (Shs1.8b) and $4 million (Shs14.5b)per transaction.
It holds its investments for a period of five years. The fund specialises in funding start-ups, growth capital financing, consolidations, mergers and acquisitions, recapitalisations and buyouts.
Aureos acquired 5.53 per cent shareholding in Deacons East Africa in the year 2006. Deacons issued shares stand at 124 million shares.