The Capital Markets Authority has revoked the licence of Acacia Fund, one of Kenya’s oldest venture capital outfits.
CMA says in a gazette notice that Acacia had notified it of its (Acacia’s) intention to cease operations, effectively requesting for the revocation of the licence it has held since 1996.
“The licensee has notified the Capital Markets Authority of its intention to cease operation of licensed activities, and the Authority has accepted the request for revocation of licence,” says CMA in the gazette notice.
Acacia was one of the pioneer funds to set up shop in Kenya in the mid-1990’s, a time when the concept of venture and private equity funds was still a novelty in the country.
Acacia was set up to invest in sectors such as financial services, retail, manufacturing, tourism, agriculture, mining and real estate, making some notable investments in fashion retailer Deacons and Hoggers, the proprietor of fast food franchises Steers and Debonairs.
The fund announced in February that it would undergo voluntary liquidation after it fell into dormancy, partly due it its main backers who included development finance institutions CDC of Britain and DEG of Germany forming new investment vehicles to invest in the regional market.