Dutch PE firm plans to double Kenyan portfolio

DOB Equity, a private equity firm based in the Netherlands, is making significant moves to double its investment portfolio in the Kenyan market. With a strategic focus on East Africa, the firm has already acquired stakes in prominent companies such as Twiga Foods, Countryside Dairy, and PowerGen since 2016. Bridget van Dijk, the CEO of DOB Equity, sat down with CNBC Africa to elaborate on the firm's expansion plans in the region. Van Dijk explained that as an impact investor, DOB Equity is targeting investments in East Africa, viewing the region as a hub of promising opportunities. The firm began its investment journey in the region in 2007, operating from the Netherlands. However, recognizing the need to be closer to the market to effectively support the growth of smaller companies, DOB Equity established a presence in Nairobi in 2014. The move proved successful, leading to a steady expansion of their investment portfolio year on year. As of the end of last year, the firm had six investment professionals in Nairobi, reflecting its commitment to the region's growth. Van Dijk highlighted the potential not only in Kenya but also in other East African countries such as Rwanda, Uganda, and Tanzania. The firm's recent opening of a new office in Dar es Salaam, Tanzania, underscores its dedication to the region's development. One of the key challenges discussed during the interview was the regulatory environment in East Africa. Van Dijk acknowledged the varying investment climates across the region's countries but emphasized that as an impact investor, DOB Equity embraces risks and challenges to support promising entrepreneurs and sectors. The firm's investments in companies like MCOPA and Tonga Fresh demonstrate its commitment to driving growth and development in the region. DOB Equity's investment portfolio is notably diverse, with a focus on sectors like renewable energy, transportation, logistics, warehousing, manufacturing, agribusiness, and primary agriculture. This diversified approach sets the firm apart, as it aims to create sustainable impact while delivering long-term returns. By investing in innovative companies that serve lower-income groups and provide affordable products and services, DOB Equity aims to foster sustainable development. Van Dijk emphasized the importance of post-investment support and active portfolio management to ensure the long-term success of their investments. Building sustainable businesses and maximizing impact require a hands-on approach, with a strong presence on the ground being essential. DOB Equity's patient capital and focus on portfolio management position the firm as a key player in driving long-term impact in East Africa's business landscape. Van Dijk concluded the interview by reiterating the firm's commitment to sustainable growth and impactful investments in the region. With a dedicated team and strategic expansion plans, DOB Equity is poised to make a lasting difference in the East African market. As the region continues to offer promising opportunities, the firm's focus on driving growth and development aligns with its vision of creating a sustainable impact in the region.