By: D E Wasake, Principal, Inachee.com

Basic information

Target:

Established entity - with three years audited financials and a track record of sales and profits.

In exceptional circumstances early stage businesses and start-ups where management teams have directly relevant prior experience and where the business has a clear route to profitability within a short period

Sector focus:

No sector focus but high interest in financial services, property, health care, technology, business services, insurance, education, manufacturing and agro-processing.

Amounts provided:

Between $0.5 - 5 million

Funding type

Private equity

Key criteria
  • Three years audited financials
  • a  Track record of sales and profits
  • Experienced Management.

Further information

www.jacanapartners.com

East Africa contact: +254(0) 20 250 4775

Who is behind the fund?

Founded in 2008 by a group of UK entrepreneurs and philanthropists, it initially worked through two local fund managers: Fidelity Capital in West Africa and InReturn Capital in East Africa. The structure combines highly experienced private equity veterans from Europe with expert teams on-the-ground. It has now commenced a merger (Jan 2013) to create a pan- African fund manager that will manage a new $75m pan-African SME fund. Jacana is currently raising from international investors.

It currently has $45m in funds under investment provided by a number of individual and institutional investors including FMO (a dutch investment bank), Oiko credit (a co-operative and social investor) and Finn fund (a development fund).

What is the process like?

It’s set out on their website but they in summary expect to move from start to finish within1 month, with the key “in principle” approval being given after about 1 month.

In summary:

  • An initial executive summary from your business plan is submitted to them
  • If they are interested, it is more likely that they will then request for a detailed business plan.
  • Thereafter they will follow this up with a face to face meeting to assess the opportunity
  • Once they approve in principle, the other aspects include the due diligence and closing

http://www.jacanapartners.com/sme-investment/investment-process

Our tips for success?

High growth. Like many private equity firms, they are keen on established businesses with high growth focus. They do highlight for example that they expect the revenue to be about 5 times their initial investment once they exit. Your business should therefore be able to deliver high returns, otherwise it is not worth developing the plan.

Team. For a private equity firm, similar to a venture capital firm, a solid team is a key factor. You must put in place a strong team, one that considers good corporate governance, ethics and strong financial controls as key. 

Clear business plan. When drawing up your business plan, have a clear and articulate strategy that will show where growth is going to come from. Illustrate the business competitive advantage i.e you are doing it better or different from the others.

Otherwise best of luck!  If you need assistance, contact our team

Disclaimer

Inachee is not an agent or connected to this entity. It is an independent thought leadership and advisory firm. The information provided is based on our research, experience and in many cases by speaking to this entity’s personnel. Whilst we have taken steps to ensure the accuracy of the information presented here, there can be no guarantee that it will remain accurate.