Kuramo secures Ksh.64.5B from African pension funds to expand investment platform

Kuramo Capital Management has announced the closing of investment mandates worth approximately $500 million (about Ksh.64.5 billion), with the funding coming primarily from African pension funds and development finance institutions (DFIs), marking a significant push to mobilise local capital for investment across the continent.

The investment manager said the funding includes commitments to the Investment in Digital and Creative Enterprises (iDICE) initiative with the Bank of Industry, MEMA, an East African pensions investment vehicle, and the Kuramo Africa Opportunity Fund IV Nigeria (KAOF IV), backed by Nigerian pension funds.

According to the firm, the new investment platform consolidates commitments from African pension funds while expanding its existing portfolio, which includes the Wholesale Investment Impact Fund (WIIF) and Moremi Capital Management, its gender-lens investment platform.

Kuramo said the Moremi Accelerator has already identified 45 first-time women-led fund managers and helped mobilise more than $100 million (Ksh.12.9 billion) in capital for women-led businesses.

The company said the latest fundraising and transition of most of its legacy assets represents the next phase of its growth strategy, allowing it to focus on deploying more African capital into African businesses.

Founded in 2010, Kuramo says it has catalysed more than $3.5 billion (Ksh.452 billion) in investments into African private equity firms and businesses, supported more than 20 fund managers, anchored over 15 funds, invested directly and indirectly in more than 200 companies, supported over 500,000 jobs and positively impacted more than three million lives.

Kuramo Founder and Chief Executive Officer Walé Adeosun said the firm's new investment platform builds on support received from international investors over the past 15 years while shifting its focus towards mobilising African capital.

"Kuramo is appreciative of the support provided over the last 15 years by our western endowments and foundation investors as their support enabled the transformation of the African private equity landscape. Kuramo is very excited about its Investment Platform, and progress in mobilizing African capital as it helps drive faster economic growth toward the sustainable development of Africa," he said.

Kuramo Co-Chief Executive Officer Shaka Kariuki said the company aims to help local pension funds diversify into alternative investments by leveraging its experience and regional networks.

"We believe that our experience, track record, and local networks will strengthen our effort toward mutually beneficial outcomes with our local strategic partners and promote impactful investments in the region," Kariuki said.

Kuramo Capital Management, which has offices in Nairobi, Lagos and New York, invests in direct investments, private equity and venture capital funds across sub-Saharan Africa through products including KAOF IV, MEMA, iDICE, Moremi Capital Management and WIIF.