Fanisi Capital invests Sh400m in second school

The investment is the first from the Fanisi Capital Fund II LLC, a growth focused private equity fund with a target to raise Ksh 5 billion

Fanisi Capital has entered into an agreement to invest up to Ksh 400 million in Kitengela International School (KISC). The agreement will see Fanisi Capital initially invest Ksh 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 Ksh 5 billion. The firm 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.

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 Mr 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 said.

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 Central Bank of Kenya.

Kitengela International School was founded by Paul Mwangangi and opened its first doors on 5th January 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 British Curriculum, the other being 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.

(L-R) Kitengela International School Founder Paul Mwangangi and Fanisi Capital Co-Managing Partner & CEO Ayisi Makatiani during the MOU signing to invest up to Ksh 400 million in the school. Looking on is Fanisi Capital Co-Managing Partner Tony Wainaina and IFC-PE and Investment Funds Officer Maingi Mukando.

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 Ksh 5 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.

Kenya’s education sector continues to attract investors with ADvTECH Ltd and Scholé Ltd jointly acquiring Makini Group of Schools from former banker Mary Okello early this year for about Ksh 2 billion.

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