UK firm eyes openings in EA

London-based finance boutique firm DVK Group, is eyeing investment opportunities in the East African region.

The firm, which manages two private equity funds – Agrofund and Emerging Market Fund – has already identified a number of prospects in Kenya.

These include the planned Konza Technolopolis and the construction of a second port in Lamu at the Kenyan coast, both of which are flagship projects in Kenya’s economic blueprint, Vision 2030.

According to its chairman, Deepak Kuntawala, DVK Group is also in talks with a farmers’ savings and credit co-operative societies in the country to access financing from the UK.

“The transactions are yet to be closed,” said Julius Kaberere, a technical co-operation advisor at the Commonwealth Secretariat, who co-ordinated the exploratory tour by the firm to assess the opportunities in December.

Mr Kuntawala, who was part of a team from the firm that visited the country, said an office would be set up in Nairobi by mid this year to co-ordinate its operations in the East and Central African region.

During the visit, the team from DVK Group, which included former British Trade and Industry Minister and House of Commons Deputy Leader Dr Nigel Griffiths and DVK Group’s Africa Fund Advisor Marianne Alapini, held meetings with government officials and industry players. They return to Kenya this month to continue discussions and further explore the opportunities.

“We have a special interest in Konza City; our next trip will be to get a feel of the opportunities that we have identified,” Mr Kuntawala added.

If the firm manages to seal one of the deals that it is considering, it would be its first private equity investment in Africa from the two funds that it manages.

While the $100 million Emerging Market Fund targets opportunities in infrastructure, technology, energy and real estate; the $100 million Agrofund that is operated from Johannesburg in South Africa, invests along the agricultural supply chain.

“We have not yet invested from an equity perspective but would like to roll it out,” Mr Kuntawala said, adding that they are also considering opportunities in South Africa, Zimbabwe and Zambia.

Besides private equity, DVK Group also focuses on structured trade or commodity finance products, commodity trading, and international hedge funds.

For the Vision 2030 flagship projects, the firm is considering taking up the public-private partnership model.

Mr Kuntawala said his firm invests an average of $3 million in a transaction depending on the gaps and clients’ needs.

The approach by DVK Group comes amid increased interest by private equity firms in the East African region. Industry players expect the ongoing integration efforts to make the region more attractive.