Laura Goldman ’12Journal 1
This summer, I am working for Fanisi Venture Capital Fund in Nairobi, Kenya. Fanisi is a USD 50 million dollar fund that was launched in 2009 to invest in small and medium enterprises (SMEs) across Kenya, Uganda, Tanzania, and Rwanda. Prior to business school, while working for a consulting firm focused on the international development sector, I spent a significant amount of time on projects related to SMEs in developing countries. This included supporting the launch of the Aspen Network of Development Entrepreneurs (ANDE), a global network of organizations that invest in and provide other types of technical assistance to SMEs. I also conducted an evaluation of a multilateral institution’s SME support program. Through this work, I came to strongly believe in the role that SMEs play in promoting sustainable development. These businesses create jobs, pay taxes, and provide important goods and services. In developed countries, formal SMEs contribute a significant portion of GDP and employment, however, in many developing countries these businesses comprise a much smaller portion of GDP as their growth is limited by a lack of appropriate financing and business support.
Fanisi is working to fill the current gaps and create a thriving SME sector in East Africa. The fund generally invests USD 0.5-3 million dollars in each transaction and targets companies across a range of sectors including information and communications technology (ICT), financial services, agriculture, healthcare, and retail. In addition to capital, Fanisi provides the companies with business advice and assistance, through hands-on support from the investment team and additional services (e.g., strategic planning, human resources reviews) funded through the Fanisi Business Advisory Support Facility. So far, the fund has made investments in three Kenyan companies and the team is actively exploring a number of other potential deals in the pipeline.
My role this summer is primarily focused on supporting the pipeline activities. This includes conducting research on potential investees and their markets, creating financial models, and helping to prepare materials for investment committee meetings. In the first few weeks of the internship, I have already been involved in three potential deals, at least one of which will likely close in the coming weeks. Each of these deals has provided significant learning opportunities. For example, I have studied three different industries (education, agriculture, and ICT), learned new financial modeling techniques, and seen firsthand the tough questions posed by the investment committee when deals are presented to them. In addition to this pipeline work, I am getting exposure to the portfolio management process. As I have participated in several of the team’s portfolio management discussions, I have learned that an investment close does not mark the end of the hard work, but rather the beginning. While it is clearly challenging to balance portfolio management and new investment activities, the team is deeply committed to working closely with their investees to help them succeed. As the internship continues, I am looking forward to continuing my involvement in both the due diligence and portfolio management activities.
