Disclaimer
I am not an agent nor am I connected to this entity. The information provided below is independent and based on my research and experience. While I have taken steps to ensure the accuracy of the information presented here, I cannot guarantee that it will remain accurate.
Basic information
Purpose: Established entity: with three years of audited financials and a track record of sales and earnings.
Sectoral approach: None in particular
amounts provided: $0.5-$5 million
Type of financing: Private capital
More information: East Africa contact: +254(0) 20 250 4775 begin_of_the_skype_highlighting FREE
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 teams of experts on the ground. A merger has now begun (January 2013) to create a pan-African fund manager who will manage a new $75 million pan-African SME fund. Jacana is currently raising funds from international investors.
It currently has $45 million in investment funds provided by a number of individual and institutional investors, including FMO (a Dutch investment bank), Oiko Credit (a cooperative and social investor), and Finn Fund (a development fund).
How is the proccess?
It’s set up on their website but in short they expect to move from start to finish within 1 month, with key “in principle” approval given after about 1 month.
In summary:
- An initial executive summary of your business plan is sent to them.
- If they are interested, they are more likely to request a detailed business plan later.
- 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 due diligence and closing.
My tips for success?
- high growth. Like many private equity firms, they are interested in established businesses with a high growth focus. They highlight, for example, that they expect the income to be about 5 times their initial investment once they come out. Therefore, your business should be able to generate high returns; otherwise, the plan is not worth developing.
- Equipment. For a private equity firm, similar to a venture capital firm, a strong team is a key factor. You need to establish a strong team, which sees good corporate governance, ethics and sound financial controls as key.
- Clear business plan. When crafting your business plan, have a clear and articulated strategy that shows where growth will come from. Illustrate the competitive advantage of the business, that is, is it doing better or different from others?
Otherwise, best of luck.
