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Fund geography
Emerging countries (256) / Africa (127) / Southern Africa (12)
Kukula Fund I (KFI) is a non-sector specific investment fund, structured as a closed-ended unit trust investing actively in selected Small and Medium Size Enterprises in Zambia with high growth potential. By investing in SMEs , KFI capitalizes on the high economic growth rates in Zambia and at the same time creates social impact, primarily through job creation.
KFI was launched in June 2010 and is managed by Kukula Capital Plc, a leading private equity and venture finance firm in Zambia. Kukula Capital Plc is a joint venture between Danish and Zambian partners with a strong and successful track record of both private equity and debt transactions in Zambia.
The name Kukula is associated with growth in the local dialects of Zambia.
Asset class
Fund status
Fund style
Not listed
Financial description
Being located in Lusaka we have a strong local understanding and network which enables Kukula to identify companies with attractive long-term growth prospects, securing a strong deal flow. Our aim is to build a diversified portfolio of investments and provide exceptional financial and social returns for investors whilst creating long-term value for portfolio companies. The key elements of Kukula Capital’s investment strategy are as follows: I. Select companies with exceptional growth prospects II. Invest with international strategic partners III. Insist on transparency and corporate governance IV. Entitlement to attend Board meetings or a seat on the board of the target companies is a condition for each investment V. As part of the engagement in the target companies, Kukula Capital Plc ensures that the target has: Monthly and annual reporting practices of profit & loss accounts, balance sheet and cash flow statements, up-to-date IT systems VI. Mitigate the downside risk by obtaining collateral on debt financing VII. Manage currency risk VIII. Impact: The Fund supports the UN Global Compact principles and has adopted a CSR policy as part of the Fund’s investment process, including due diligence and monitoring. The Fund’s CSR policy is based upon international UN, ILO and OECD conventions, declarations and agreements
14 years
of track record
2010
the year funded
50,000,000 ZMW
AUM
Interested in this fund?
Log in or create an account to request more information.
Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.
Asset manager
Key performance indicators
Fund overview
Asset manager: Kukula Capital
Product track record: Fund has 14 years of track record
Target IRR: 20%
Committed Capital: 18,005,740 ZMW (Zambian Kwacha)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Zambia
Product status: Open - post first close
Style/Stage:
Inception year: 2010
Vintage year: 2010
Target region: Africa, Emerging countries, Southern Africa
Target close date: 01/06/2014
Product term: 10 year term
Assets under management: 50,000,000 ZMW (Zambian Kwacha)
Investment size: Min: 500,000; Max: 10,000,000; Avg: 1,000,000
Co-investment policy:
Currency of investments: ZMW (Zambian Kwacha)
Currency for fund / product figures: ZMW (Zambian Kwacha)
Fund investments to date: 4
Fund investments to date exited or repaid: 0
Management fee: 2.75%
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: Kukula Capital Promoters, The Danish Industrialization Fund for Developing countries (IFU), Kwacha Pension Trust Fund
Limited Partner / Investor Type: Development Finance Institution (DFI), Pension Funds, Other Institutional Investors, Retail Investors
Contact
E-mail: info@kukulacapital.com
Website: http://www.kukulacapital.com/content/53/fund-management
Phone number: +260 211 295792
If you wish to have your details removed from this database please email gdpr@impactyield.com
Jito Jakatabala Kayumba
Investment Manager
Tue Nyboe Andersen
Managing Director
Impact Performance
n.a.
Impact thesis
Each investment of Kukula Fund 1 must demonstrate significant social impact, primarily through job creation. Further, management teams of the target investment will be equipped with improved management and corporate governance tools which will facilitate sustainable growth and improve the likelihood of a successful expansion. The Fund supports the UN Global Compact principles and has adopted a CSR policy as part of the Fund’s investment process, including due diligence and monitoring. The Fund’s CSR policy is based upon international UN, ILO and OECD conventions, declarations and agreements.
Since launch in November 2010 KFI has achieved the following:
1. Financed the successful expansion of 3 Zambian businesses
2. Created 126 direct jobs
3. Enabled the expansion of an orphanage with an additional 8 children (from 17 to 25)
4. Improved the financial reporting and corporate governance in investee companies
Impact Management
n.a.