Generation Investment Management Closes Ksh 101.3 Billion Growth Equity Fund

Generation Investment Management, a Pan-African focused sustainable investment firm, based in San Francisco, USA, has announced the closing of a USD 1.0 bn (101.3 billion shillings) growth equity fund, Generation Sustainable Solutions Fund III.

The fund will be the third raised by the firm, after Generation Climate Solutions Fund II, which raised USD 683.0 million (69.1 billion shillings) in 2014 and Global Equity Strategy Fund, which raised USD 2.2 billion (222.7 billion shillings) in 2008.

The Fund seeks to target start-up companies with a focus on financial inclusion, healthcare, and environmental solutions.

The fund, even before closure, made two investments, one in Andela, a Nigeria-based software development service provider, where it invested an undisclosed amount into the firm’s Series D funding, whose target was to raise USD 100.0 million (10.1 billion shillings).

The second investment was made at Sophia Genetics, a healthcare technology company based in Washington, USA, where it invested an undisclosed amount.

The fund will make investments of between USD 50.0 million (5.1 billion shillings) and USD 150.0 million (15.2 billion shillings).

Cytonn Investments maintains a positive outlook on private equity investments in Africa as evidenced by the increasing investor interest, which is attributed to;

• economic growth, which is projected to improve in Africa’s most developed PE markets,
• attractive valuations in Sub Saharan Africa’s private markets compared to its public markets, and
• attractive valuations in Sub Saharan Africa’s markets compared to global markets.

Going forward, the increasing investor interest, stable macro-economic and political environment will continue to boost deal flow into African markets.

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