Fasmicro Group, a dynamic diversified conglomerate with interests on technology, agriculture, finance and consulting, has unveiled a funding system with focus on the private sector in Africa. In the past, our Funds had focused on public sector where we have worked on projects with Mali’s Ministry of Energy and Water, Federal Capital Development Authority (Abuja, Nigeria), etc.
For this fund, we are working with global private equity firms to fund private sector projects in continental Africa (excluding Somali and Sudan; sanctions, and as an American, I cannot do business there). The overall framework of this Fund is as follows:
- Amount: $10 million – $25 million.
- Duration: Multi-years with grace period for repayment.
- Interest rate: Single digit.
- Fees Involved: Basic and success fees. The basic fee is not paid up-front. It takes place after advanced phase of the process when we have ascertained the deal is near-closure.
- Debt payment: You cannot use our Funds to repay debts. It is a growth fund.
- Territory: Africa excluding Somali and Sudan.
- Structure: No franchise unless it is the HQ of a franchise. In other words, if you belong to a franchise, we cannot fund you. But if your business controls franchises, we would consider.
- Type: Equity/Debt.
- Closure Duration: In weeks depending on the quality of your documentations and processes for due diligence.
- Industry: We are sector agnostic; we fund all legal business sectors.
- PPP (Govt Partnership): We fund projects with partnerships with government provided the partnerships can be structured as JVs where government control is diminished. Government cannot be a majority shareholder of projects supported by this Fund.
- Clause: We may require a freeze of all dividends (to your shareholders) until debt financing is paid off in our termsheet.
Send your business plan to [email protected].
Our team is already working in Lagos and would respond to you within hours we receive your business plan. The feedback will inform you of our interest. If we like the business, the team would perform preliminary due diligence as we move on the process. You would be invited to a meeting after speaking with our team. No one would ask you to pay any fee; that happens deep into the process.
We would open an Addis Ababa office in coming months to manage projects in eastern and southern Africa.
Please Note: This fund is largely more expensive compared to VC fund. It is not generally optimized for startups. Also, it is not structured for government projects.