KENYA – Private equity firm Ascent Capital has agreed to acquire a majority stake in Diani-based hospital group Diani Beach Hospitality Limited (DBH).
Ascent Capital is an entrepreneurial investment partner that invests predominantly growth capital in companies with significant growth potential and proven track records through the US$80M private equity Ascent Rift Valley Fund.
The mission of the Fund is to develop and nurture a league of enterprise champions that set the bar for business standards in their respective markets.
According to a regulatory filing provided by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission where the parties are seeking clearance, Ascent will be seeking to take up an 80 percent stake in its first major healthcare deal.
The financial details of the acquisition were not, however, immediately disclosed as approval was needed since the deal is not closed.
Ascent is set to have a majority stake in Diani Beach Hospitality Limited which operates a hospital in Diani Beach, Ukunda on the southern coast of Kenya with three satellite clinics in Kwale Town, Likoni Town and Ukunda Town.
The fund has local advisory presence and operationally focused teams in Ethiopia, Kenya and Uganda thus the DBH deal will further Ascent’s mission to expand exciting successful businesses throughout the region.
The acquisition is in line with Ascent’s aim to be the investment partner of choice in Eastern Africa by establishing a strong local presence in all active markets such as healthcare and by developing long-term relationships with entrepreneurs.
Ascent has been investing in a broad range of sectors in Ethiopia, Kenya and Uganda usually through transactions ranging between KSh201 million (US$2 million) and KSh1.5 billion (US$15 million).
In 2021, Ascent raised US$100 million from the World Bank and top sovereign funds for investment in local companies across Eastern African.
The private equity said it will invest between US$5 million and a maximum of US$19.5 million in firms across growth sectors including health sectors in Kenya, Ethiopia, Uganda, Tanzania and Rwanda.
Additionally, Ascent Capital led the US$ 20 million Series B funding round for EnKash, an India-based all-in-one Spends Management Platform and Corporate Cards company alongside Baring India & Singapore-based White Ventures.
Ascent also merged with Fanisi Capital, a fund which makes direct investments to raise funds for bigger deals in the East African region as well as to scale up and yield higher returns for investors.
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