Investment Bank Sterling Capital has bought 20 percent stake of an SME private equity fund Afvest, targeting deals below Sh500 million.
Many private equity funds manage over Sh10 billion and therefore have a bias to invest relatively large amounts of Sh500 million per transaction.
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Afvest is a private investment company founded in 2012 by a group of relatively young professionals and business people to identify and exploit opportunities to invest equity stakes in fast-growing emerging businesses and companies both locally and in the region.
Sterling Capital was downgraded to stockbroker level in 2011, after it failed to meet CMA’s revised minimum capital limit for market players. However, after the firm was reinstated to its investment banking license in October 2017 it has started building up its portfolio.
Sterling strong positioning comes just a year after Kuramo Capital bought 45 percent stake in Sterling Capital injecting Sh200 million that has brought out the firm’s potential.