Most of the $800 million private equity (PE) funds have targeted the agriculture, financial services, energy and natural sectors in the region, according to a new survey.

The PE survey by financial consultancy KPMG and the East Africa Venture Capital Association (Eavca), the industry lobby, says most funds have been absorbed in select sectors over the last seven years.

The survey found there were 79 disclosed private equity deals worth $800 million between 2007 and 2014.

“Furthermore, the majority of the announced deals are in the energy and natural resources sectors. Our survey, however, indicates the agricultural, financial services and fast moving consumer goods (FMCG) sectors have also experienced a large part of the deals activity,” said the survey.

Kenya accounted for the lion’s share of the reported deals taking 63 per cent of the reported billions.

Tanzania was second at 15 per cent, Uganda (10 per cent), Rwanda (eight per cent) and Ethiopia at four per cent.

Some of the reported deals in the financial sectors in 2014 included Leapfrog Investment exit from Apollo Investment through selling 26.9 per cent stake in the insurer to Swiss Re and Fusion Capital’s 25 per cent purchase of REMU microfinance bank.

In agribusiness, Fanisi Capital bought a 40.15 per cent stake in Laikipia-based abattoir Ngare Narok Meat Industries for Ksh221 million ($2.3 million).

The survey found the agricultural sector accounted for 27 per cent of the reported deals, financial services 14 per cent, FMCG 11 per cent, ICT 10 per cent, healthcare nine per cent while logistics and other industries accounted for the remaining 29 per cent.

Investments in agriculture were however mainly registered in the secondary sector such as meat and dairy processing.

KPMG deal advisory director (Kenya) Sheel Gill said funds are attracted to these industries since they serve the growing middle class with an increasing disposable income.

Ms Gill however said there are opportunities in sectors such as education and logistics which have been overlooked.

“Majority of the middle class save for their children’s education. This is also a sector where not so many funds are looking at,” Ms Gill told the Business Daily.

A 2014 report by financial consultancy Ernest & Young found that between 2007 and 2013 inflows to Kenya were some of the fastest growing in sub-Sahara Africa, only second to Ghana, with most of them coming from private equity funds.