UAP, attracts KES 4.7 billion from three Private Equity Funds
UAP Insurance Group, a Centum portfolio company, has raised KES 4.7 billion from Aureos Africa Fund L.L.C, AfricInvest Fund II L.L.C and AfricInvest Financial Sector Fund, as well as Swedfund International.
The funds will be used to strengthen UAP Group’s balance sheet to finance its real estate projects and to support its planned African expansion. The Group currently has operations in Kenya, Uganda, Southern Sudan and the Democratic Republic of Congo
Centum invested KES 163 million for its 24.23% stake in UAP in 2003. The current valuation reflects a ten times uplift on the investment cost and a 20% uplift on the March 2011 valuation.
The investment by the three international private equity funds is a show of confidence in UAP’s strong brand and in its future growth prospects. This investment quickly follows International Finance Corporation (IFC) commitment to invest USD 5 million in UAP’s real estate project in Southern Sudan. The Group plans to expand its operations into Tanzania, Rwanda, and the Democratic Republic of Congo by the end of this year.
Centum has over USD 180 million in assets under management, of which USD 100 million is in private equity portfolio companies. Centum is an investor in Longhorn Publishers Limited which listed in on the Nairobi Stock Exchange on 30th May 2012. Centum has also invested in General Motors East Africa Limited, NAS Servair, AON Insurance Brokers Limited and Kenya Wine Agencies Limited and in 4 of the 6 Coca Bottlers in Kenya. Centum is a publicly traded investment company that is listed on the Nairobi Stock Exchange and on the Uganda Securities Exchange.
Aureos Capital has developed a diversified portfolio of emerging market private equity funds that focus on Africa, Asia and Latin America. Aureos Capital has over USD 1.3 billion in capital commitments in 18 Funds, of which 3 focus on Latin America, 10 focus on Asia and 5 focus on Africa, including Aureos Africa Fund. Aureos has completed over 270 transactions, three quarters of which are in financial services, FMCG, telecoms, construction and engineering, and manufacturing.
Swedfund, a wholly owned subsidiary of the Swedish government, was founded in 1979 to provide capital, expertise and financial support in emerging markets. By the end 2010, the Fund had invested USD 300 million in 93 companies in 46 countries. 49% of its investments (by acquisition value) had been made in Africa, 29% in Asia, 17% in Eastern Europe and the balance in Latin Africa. Swedfund is a bilateral Development Finance Institution and it is a member of the European Development Finance Institutions (EDFI) network.
AfricInvest-TunInvest Group is an independent private equity fund manager founded in 1994 and controlled by its employees. The Group raised its first fund in 1994, and is currently investing its third generation of funds targeting growth SMEs in North and Sub-Saharan Africa. The Group has more than USD 700 million in assets under management (AUM) spread over 11 Funds, including a Fund that specializes in financial services.