Fanisi Capital has entered into an agreement to invest up to Sh400 million in Kitengela International School (KISC).
The agreement will see Fanisi Capital initially invest Shs 205 million.
The investment is the first from the Fanisi Capital Fund II LLC, a growth-focused private equity fund with a target to raise Sh 5 billion.
Fanisi Capital plans to continue making investments in high growth consumer sectors including healthcare, education, consumer goods and agribusiness.
The deal is subject to approval by the Competition Authority of Kenya (CAK).
Fanisi Capital’s Co-Managing Partner and Chief Executive, Ayisi Makatiani, said the school fits into the firm’s investment portfolio with its ambitious growth strategy to triple student population from the current 1,000 and open two more schools over the next five years.
“We are on a journey to build centres of academic excellence and expand their footprint,” said Makatiani during the organisation’s investor briefing.
“We are in the final stages of fund-raising for Fanisi Capital Fund II, which has attracted interest from both local and international investors. Over 40 per cent of the investors in this fund are local with twelve local pension schemes coming on board,” he added.
In addition to World Bank’s International Finance Corporation (IFC) and Norway’s Norfund, local investors include NSSF, and the pension schemes from Kenya Power, Barclays Bank, Zamara Fanaka Fund, Co-operative Bank, Laptrust and the Central Bank of Kenya (CBK).
Kitengela International School was founded by Paul Mwangangi and opened its doors on January 5, 2009, with 8-4-4 curriculum mixed day and boarding Primary as well as a fully boarding Girls High School.
It has since expanded to four schools, one of which offers the British Curriculum while the other is a second local curriculum primary school.
“I have always had a passion for education and ensuring that the next generation receives the best. That is what drove us to start this school. We have seen organic growth in the past nine years to where we are today. This partnership with Fanisi Capital will enable us to leap to the next step, and to expand our reach and capacity without compromising the quality of education we offer,” said Mwangangi.
This is the second group of schools Fanisi is investing in, having invested in Hillcrest International Schools in 2011.
“Education is a core sector for Fanisi and one in which we are looking to build a network of schools across the region. For Fanisi it is an objective for us to continue to positively impact businesses across the region and we are delighted to make this first investment under our Fund II,” Fanisi Capital Co-Managing Partner, Tony Wainaina, said.
Fanisi’s Fund I, which had Sh5 billion in assets, is fully invested in companies across the region including the Hillcrest Group of Schools and Ngare Narok Meat Industries in Kenya as well as ProDev/Mimex Group in Rwanda, and Sophar in Rwanda among others.