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, there is no guarantee that it will continue to be accurate.

Basic information

Objective: Established entity: with financial statements audited for three years and a history of sales and earnings.

Sector focus: None in particular

Amounts provided: $ 0.5- $ 5 million

Financing type: 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 that will manage a new $ 75 million pan-African fund for SMEs. Currently, Jacana is raising from international investors.

It currently has $ 45 million in mutual 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 is established on their website, but in short they expect to go from start to finish within 1 month, and the key approval “in principle” is 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.
• Thereafter, they will follow up on this with a face-to-face meeting to assess the opportunity.
• Once approved in principle, the other aspects include due diligence and closure.

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 roughly 5 times their initial investment once they come out. Therefore, your company should be able to offer high returns; otherwise the plan is not worth developing.
• Team. For a private equity firm, similar to a venture capital firm, a strong team is a key factor. You must establish a strong team, one that considers good corporate governance, ethics, and sound financial controls 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, you are doing better or differently than others.

Otherwise, good luck.