Sector: 
Micro-finance
Country: 
Zambia
Date of Investment: 
August 2013
Deal type: 
Buy-Out and Expansion capital

The Regional PE fund Kibo I has partially exited its investment in Madison Finance Company Limited (MFinance) through redemption of its preference shares in October 2015, realizing an IRR of 29.8% in Euro terms. MFinance is one of the largest licensed microfinance Institutions in Zambia with a network of 18 branches. TKF acquired a 20% stake in MFinance in August 2013 with a follow on investment of 5% in August 2014, and invested in additional preference shares to help the business grow its existing loan book to small and medium enterprises.  Kibo I remains a partner with MFinance through its investment in ordinary shares.