Funguo Investments eyes acquisitions to grow revenues
Funguo Investments Limited has announced plans to raise funds as it eyes to investments in the real estate and agro processing sectors to grow revenues.
Funguo has already entered talks with several medium sized firms to initiate acquisition deals.
Funguo Investments chief executive officer Kenneth Muchina said on Tuesday the company could invest an initial Sh100 million in its acquisition bids but will consider larger amounts should the companies show great scope for growth.
“We invest in mid-sized but growing businesses with a possibility, at the point we exit, of selling our stake to an investment house which prefers a more mature business with a larger investment amount,” Mr Muchina said.
Funguo is majority owned by state corporation, Industrial and Commercial Development Corporation (ICDC).
Mr Muchina said availability of top grade investment opportunities, accessing suitable capital and human capital, are key challenges facing private equity funds in the country.
“We have over the years intentionally sought to diversify the asset classes that we are invested in, and the sectors of the economy that we are exposed to, which allows us to expand our investee client base,” he said.
Funguo is yet to disclose how much it targets to raise for expansion and acquisitions.
Funguo’s focus on private equity type of investments has seen it appeal to a niche market of investors with an appetite for private equity risks and attendant returns.
Funguo reported a full year profit of Sh23 million for its financial ended June.
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