The Fund will be managed by Catalyst Principal Partners LLC (“Fund Manager” or the “Manager”) domiciled in Mauritius and with a subsidiary based in Nairobi, Kenya. The Fund Manager will commit a minimum of 1% of the total capital commitment of the Fund, which will align the interests of the management team with those of other investors in the Fund. The Fund Manager will have three partners: Paul Kavuma, who has over 17 years of consulting, entrepreneurial, investment banking, and private equity experience in East Africa with Actis from 2003 to 2008; Biniam Yohannes, who has over 10 years experience in investment banking, private equity and emerging markets investing most recently with Goldman Sachs; and Rajal Upadhyaya, who has over 12 years experience in consulting, corporate finance, strategy and mergers and acquisition experience in Kenya and the UK. In addition to the three partners, the Manager has recruited key members of the investment and support team including an Investment Manager, Investment Principal, Financial Controller, and Corporate and Compliance Manager.

The total fund size is up to US$125 million, of which IFC proposes an equity investment of $10 million, not exceeding 20% of the Fund.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

Catalyst is a Mauritius-domiciled private equity fund. The Manager will also be domiciled in Mauritius with a subsidiary office in Nairobi, Kenya. The Fund aims to invest no more than 35% of total capital in Kenya, no more than 25% each in Uganda and Tanzania (collectively termed “Core Region”), and opportunistically invest no more than 35% in aggregate in other IDA countries in the region.

The Fund will achieve development impact by improving access to equity financing to emerging and mid-sized companies that are expected to create above average employment and accelerate economic growth across the region. The investments will be across a diversity of sectors. The Fund's investments in target companies will range from $5 million to $15 million and will consist predominantly of strategic minority equity stakes, with board representation and shareholder right to influence the strategic direction of the company and conduct of management.

Through its investment: i) IFC expects to catalyze fund raising by participating in the first closing, including the mobilization of capital from within the regional market. IFC's support will put a stamp of approval and allow the Fund to reach first closing; ii) IFC will assist in structuring the Fund and shaping the terms and governance to reflect international emerging markets best practice; iii) IFC's support and active participation on the Fund's Advisory Committee will contribute to improved governance at the Fund and the investee level; and iv) Investees may benefit from IFC's direct investment in both debt and equity through co-investment opportunities.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the Fund’s expected portfolio and sectors of investment and determined based on an analysis of the potential social and environmental risks associated with the expected portfolio and considering IFC’s investment as the Applicable Performance Requirements the IFC FI Exclusion List, the applicable National Social and Environmental Laws and regulations and the IFC Performance Standards. IFC also reviewed the capacity of the fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). Catalyst Fund has developed a draft SEMS during the appraisal of the project and identified responsible, qualified persons to manage and implement the SEMS. The Fund Manager will be required to (i) finalize the SEMS, prior to commitment, to the satisfaction of IFC to ensure compliance with the Applicable Performance Requirements, (ii) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements, (iii) notify IFC if a proposed Portfolio Company conducts or intends to conduct any Category A or B activity, and (iv) submit a periodic report to IFC as per a format provided by IFC. Once in portfolio IFC will review the implementation and performance of the Fund’s SEMS for the first three projects, prior to the Fund’s investment, to ensure that the SEMS is robust.