Key Takeaways from the 1st East Africa Private Equity & Venture Capital Breakfast in Nairobi
May 22nd 2025
Pedersen & Partners and CMS Kenya | Daly Inamdar Advocates co-hosted the 1st East Africa Private Equity & Venture Capital Breakfast in Nairobi.
The event brought together private equity, venture capital, and institutional investors to exchange insights on capital flows, fundraising shifts, sectoral opportunities, and investment priorities in East Africa.
The panel discussion was moderated by Michael Al-Nassir, Equity Partner, Head of META & Head of Private Equity Practice APMEA at Pedersen & Partners, and Kevin Kwasa, Partner at CMS Kenya | Daly Inamdar Advocates.
Panelists included:
- Dan Apungu – Principal, Adenia
- Marieke Geurts – Investment Director, Amethis
- Michael Jelinske – Director of Investments, LeapFrog Investments
- Cikü Mugambi – Investment Director, DOB Equity
- Jean-Paul Ntungicimpaye – Senior Investment Manager, AfricInvest
- Ashish Patel – Managing Partner for Africa and Credit, Aavishkaar Capital
- Sapna Shah – Partner, Novastar Ventures
Key takeaways from the discussion:
1. Macroeconomics & External Factors
- Liquidity constraints are pressuring funds to pursue more M&A and alternative value realisation strategies.
2. Fund Structures & Fundraising Trends
- Fundraising is consolidating - larger, Pan-African or thematically specialised funds (e.g. climate, credit) are succeeding, while first-time fund managers struggle.
- Strategic partnerships help stabilise fund trajectories.
- DPI is under intense LP scrutiny, reflecting pressure on GPs to demonstrate realised returns.
3. High-Opportunity Sectors & Market Segments
- Healthcare: broad opportunity from clinics to distribution and tech (AI, genomics).
- Financial Services & FinTech: Continues to attract capital, especially where AI can reduce costs.
- Agriculture & Value Addition: Taps Africa’s natural advantages with strong margins. Includes export-oriented manufacturing (food & non-food, such as textiles).
4. Value Creation & Exit Strategies
- Creative exit routes—including M&A and partnerships with strategic acquirers (e.g., Toyota/CFAO with Goodlife) - are becoming more prevalent.
- Local capital markets remain weak, limiting IPO/secondary market exits. Building domestic exit capacity is key to ecosystem maturity.
5. ESG, Governance & Impact
- True impact investing in Africa is rooted in job creation and local supply chains, rather than superficial metrics.
- Operational ESG integration is ongoing; many funds lack full-time specialists and rely on existing internal resources or third-party advisors.
- ESG requirements should be staged, especially for early-stage companies - communicated clearly at term sheet stage.
6. Human Capital
- Human capital due diligence is underutilised due to cost and deal structure limitations. Legal/financial DD is often prioritised, with human capital assessment overlooked.
- Strategic use of advisors: Subject matter experts and advisors can be leveraged during due diligence and transitioned post-deal to leadership or Independent Board roles.
7. Regional Investment Trends & Geographic Strategies
- Kenyan founders vs. foreign founders: Local founders understand the market well but need to improve self-promotion and investor communication. Foreign founders often align better with global investor expectations.
- Need for local LPs: Their participation can catalyse broader investment and build confidence in African PE ecosystems.
Pedersen & Partners and CMS Kenya | Daly Inamdar Advocates thank all panelists and participants for an engaging and forward-looking discussion.