Catalyst Principal reaches $155mln for Fund II’s final close

Nairobi-based private equity firm Catalyst Principal Partners has raised $155 million its second fund, garnering commitments from a mix of domestic and international institutional investors for this, its final close. A generalist, 10-year fund, Catalyst Fund II will target mid-market growth capital investments within fast growth consumer demand driven sectors across Eastern Africa, with a consistent core focus on the consumer staples, financial services, industrials and healthcare industries. The investment approach is similar to that taken by Catalyst’s first fund, a $125 million vehicle that is now fully deployed, having made nine investments.

In April 2017, Catalyst Fund II held its first close, landing $103 million in commitments from several development finance institutions, fund-of-funds and family offices. With an IRR target of 25%, Africa Capital Digest reported at the time that the fund’s strategy was to take significant minority or control positions in each of the companies it backs, with typical deal sizes expected to range in the $7.5 million to $25 million range. Additionally, the fund will make investments at the rate of between two and three deals per year, ending up with a portfolio of between eight and twelve companies in its portfolio once its capital has been fully deployed.

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