In a bid to diversify and grow its investment portfolio, Britam Asset Managers has invested Kshs.1.4 billion into Everstrong Power Limited. This will be the first investment of its kind in Kenya.
Everstrong Power Limited, a private equity firm that invests in energy assets in Africa, has used the funds to buy a stake in the 80MW heavy fuel oil Athi River power plant owned by Gulf Energy, one of the top oil and energy players in East Africa. The power plant was commissioned in 2014 and it has a 20-year power purchase agreement (PPA) with Kenya Power.
“Through this investment, Britam Asset Managers’ institutional clients will achieve diversification across asset classes and currencies because the returns from the power plant will be in hard currency,” said Kenneth Kaniu, the Chief Executive Officer, Britam Asset Managers during a media brief. “Of critical importance, we shall be playing a key role in funding and provision of long term capital into the Kenyan power sector,” he added.
Moreover, the firm’s clients will now benefit from more stable and less volatile returns since it will diversify its investments beyond the traditional asset classes – equities, real estate and bonds.
Everstrong Capital LLC Principal Africa and Country Head Kenya, John Ouko on the other hand hailed this development as a good start. “We intend to assemble more investments that allow Britam and other likeminded firms to invest into energy, transport and communications infrastructure in Kenya and other parts of Sub-Saharan Africa,” he emphasized.
In the same breath, Mr. Francis Njogu, Gulf Energy Group CEO observed that his company will continue to offer very attractive investment opportunities to partners like Britam with access to large pools of capital looking for excellent and stable long term returns.
Managing assets valued at Kshs. 158 million, Britam Asset Managers is one of the leading and well established asset management firms in the region.