Emerging Africa Capital (EmAC), a Nairobi-based investment advisory firm, intends to raise sh9-billion ($100-million) for a proposed private equity fund, which will invest in ICT, FMCG and renewable energy sectors.

The firm, which plans to hive off the PE entity into a separate outfit, is currently negotiating with a South African and a UK investor who have promised the funds, according to chief executive Michael Musau.

Musau said the UK investor had undertaken to contribute $70-million to the fund while the rest of the cash is expected to be raised from within the region. A chinese firm could also get a stake in the fund.

The fund will invest in the eastern African region.

EmAC could target its current client base for funds. They include international firms such as private equity FMS group based in Australia and Singapore, International Standard Asset Management (ISAM), a hedge fund entity that currently manages assets in excess of $500-million, and local firms including Stuart Construction Kenya, Digital Vision, Zomax Limited and Mahadi Energy.

In 2007-8, EmAC was among the five placement agents for the Sh700-million Bora Real Estate Investment Limited, a privately-owned real estate investment trust. The firm is also involved in a $63-million (Sh6.3-billion) public private partnership project on renewable energy consultancy in the Democratic Republic of Congo (DRC).

Source: BusinessDaily