The pan-African private equity firm, 8 Miles has acquired a 42% stake in Orient Bank, a mid-tier commercial bank in Uganda, from Keystone Bank, a state-owned Nigerian bank.

The financial details of the transaction were not disclosed.

Hemen Shah, Partner at 8 Miles, said: “The financial services sector in Uganda represents an attractive investment opportunity with a growing economy and a largely unbanked population.”

“We have the opportunity to work alongside a knowledgeable founder and a good management team and we are delighted to be backing them,” he said.

The investment will be made alongside the founders of the bank, who have increased their shareholding in the bank to 49%.

Orient Bank was founded in 1993 and provides banking, stockbroking and other related financial services to retail and corporate customers in Uganda, a country in which 80% of the population is currently estimated to be unbanked.

Orient Bank has 23 branches in commercial centres across Uganda and as at 31 December 2014 had assets of $173m and customer deposits of $139m.

Ketan Morjaria, Vice Chairman and co-founder of Orient Bank, said: “This strategic alliance with 8 Miles represents a new beginning for Orient and we look forward to working with their team in restoring the fortunes of the bank.”

8 Miles LLP is regulated by the UK Financial Conduct Authority and the Fund is only open to institutional and qualified investors.

The private equity firm invests in consumer-driven businesses and service providers with strong growth prospects.

Previous 8 Miles investments include: Eagle Chemicals, a producer of resin and polymer products in Egypt; Biyinzika Poultry International, a poultry producer in Uganda; Awash Winery, an Ethiopian winery; and eleni, a company that designs, builds and deploys turn-key commodity exchanges in Africa, including the ancillary supporting infrastructure.