FMO and the International Finance Corporation (IFC) have approved $20m in commitments to Ascent Capital's sophomore fund.

Each of the DFIs is committing $10m to Ascent Rift Valley Fund II.

Having raised a $78m private equity fund that invests in SMEs in Ethiopia, Kenya and Uganda, the same team from Ascent Rift Valley Fund I is now raising that fund’s successor: Ascent Rift Valley Fund II (ARVF II).

ARVF II has a proposed fund size of $120m and will execute on the same strategy as its predecessor.

ARVF II aims to invest in and develop regional SMEs in East Africa, making use of its local presence and hands-on investment approach to do so.

“By investing in ARVF II, FMO can contribute to the economic growth of East Africa and help develop the private equity market in this region of the world,” FMO said.