38752 - Fanisi Capital Fund II LLC

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Summary of Investment Information

Project Number

38752

Company Name

FANISI CAPITAL FUND II LLC

Date SPI Disclosed

Oct 3, 2016

Country

Eastern Africa Region

Region

Africa

Projected Board Date

Nov 3, 2016

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Jul 17, 2017
Signed : May 31, 2017
Invested : Jun 29, 2017

Sector

Growth Equity Fund

Project Description

The project proposes an IFC equity investment of up to $7.5 million, not to exceed 20% of total committed capital, in Fanisi Capital Fund II LLC (the “Fund”), a 10 year closed-end SME Ventures fund targeting growth oriented SMEs in East Africa.

The Fund will have a generalist strategy investing in four East African countries - Kenya, Rwanda, Tanzania and Uganda – targeting SMEs in the following four sectors: Agribusiness, Retail Consumer (FMCG), Healthcare and Education.

Associated Advisory Engagement

"SME Ventures Advisory will support Fanisi to: Implement an ERP system for improved portfolio financial and operating performance Identify and hire industry experts to support pre-investment due diligence; Identify and hire management and industry experts to grow topline revenue, improve E&S, governance and industry standards; Identify and hire expertise to structure and package investee exits."

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	250.0

Development Impact

IFC''s expected additionality will be:
1) Catalyzing fund raising by participating in the First Close. IFC''s stamp of approval is important for some potential LPs;
2) Assisting in structuring the Fund and shaping the terms and governance to reflect international emerging markets best practice;
3) Active participation on the Fund''s Advisory Committee, thereby contributing to improved governance at the Fund and investee level;
4) Promoting best practice E&S standards at both Fund and investee level.

E&S Category Rationale / Risks and Mitigation

Fanisi II is a generalist fund focusing on investing in mid-market companies mostly in East African countries; Kenya, Tanzania, Uganda and Rwanda. The fund’s pipeline includes the following sectors – Healthcare, FMCG, Education and agribusiness. The potential E&S risks and impacts associated with these sectors are considered mostly limited, site-specific and reversible; the overall portfolio risk is thus considered medium. The project has been categorized as FI-2 according to IFC’s Policy on Environmental and Social Sustainability. The applicable requirements are the IFC Exclusion List, the National E&S Laws in the countries where portfolio companies are located and the IFC Performance Standards.

The main E&S risks and impacts of this project relate to the ability of the Fund Manager to conduct adequate E&S due diligence and monitoring to identify and manage the E&S risks associated with the activities of the portfolio companies in line with IFC’s policy requirements. The Fund Manager is an existing IFC client; IFC invested in Fanisi Fund I. The Fund Manager has an Environmental and Social Management System (ESMS) which is applicable to Funds I and II, an E&S Officer, and adequate E&S due diligence and monitoring assessments are conducted for portfolio companies.

Contacts

For Inquiries About the Project, Contact

Ayisi Makatiani, Managing Partner
Fanisi Capital Limited
4th Floor Arlington Block
14 Riverside Drive
PO Box 66162 – 00800, Westlands
Nairobi, Kenya.
Tel: +254 20 420 7000
Fax: +254 20
Email: mailto:letstalk@fanisi.com
Web: http://www.fanisi.com

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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