Fusion Capital Limited

Fusion Capital's vision is to become a leading provider of SME focused financial solutions in the target market of Kenya using a viable, commercial business model that delivers competitive returns to investors while facilitating local wealth generation, job creation and economic development.

The Target Market
Fusion Capital has identified a market gap in Kenya’s financial sector - the ‘Missing Middle’. Very well established micro finance and commercial banking institutions serve the extreme ends of the funding spectrum relatively well but leave the financial requirements of those businesses transitioning from one end to the other largely unmet. These businesses are growing too fast and have capital requirements too large for the microfinance system to effectively provide for and due to a lack of collateral and only a short track record, present too high a risk profile for the commercial banking system to handle.

The Method
Fusion Capital realises value from these underserved small and medium sized businesses through offering a range of financial products specifically designed to meet their needs while limiting our risk exposure.

A key offering is an integrated package of business development assistance and appropriate finance, using both debt and equity, targeted at entrepreneurs who have a viable growth orientated company but have limited capital to contribute and limited collateral to cover a large loan. The core of the investments are made through a tailored loan facility with a secured and unsecured portion. The risk associated with the unsecured funds are offset by Fusion Capital taking a minority equity stake. Business support is offered throughout the life-time of the investment focussing on achieving long term growth and profitability ensuring the on going viability of the business.