Helios Investment Partners has partially exited its stake in Equity Group Holdings, Kenya’s banking group, to the Norwegian Investment Fund for Developing Countries (Norfund) and NorFinance, a joint venture investment company between Norfund and Norwegian private investors.

Helios has sold a 12.223% stake, which represents half of Helios’ interest in Equity Group Holding.

Babatunde Soyoye, Managing Partner of Helios, said: “Helios is delighted to introduce Norfund and NorFinance as new, like-minded investors. Norfund and NorFinance share Equity’s core values of partnership, promoting financial inclusion and strong corporate governance.”

“We are proud to have played a role in the bank’s growth and success to date, and look forward to continuing to partner with Equity in the next phase of its development and to support its direct positive impact on the lives of people in the communities within which it operates,” he said.

Equity is the leading inclusive banking group in East Africa with nearly 10 million customer accounts and approximately $4bn in assets.

Equity is the largest listed bank on the Nairobi Securities Exchange and the Uganda Securities Exchange.

The Bank has subsidiaries across the region and is engaged in the provision of banking, insurance agency, investment banking, securities brokerage and information and telecommunications technology outsourcing services.

Equity has consistently delivered exceptional performance, with profit after tax growing in excess of 30% annually through the global financial crisis spanning from 2007 to 2013.

Over this period, the bank has expanded its business and customer segments to become fully inclusive, and extended its operations regionally into Uganda, Tanzania, Rwanda and South Sudan.

Equity has recently embarked on a new phase of development, a corporate growth strategy entitled “Equity 3.0’’, and is well positioned to maintain its impressive performance trajectory by further leveraging technology and leading in innovation.

Norfund has invested in banks and other financial institutions for more than ten years, and the investments in the sector currently make up a third of Norfund's total portfolio.

Kjell Roland, Managing Director of Norfund, highlighted Norfund’s strong interest in Equity, saying: “Equity is an attractive business with a best-in-class global management team and an established track record within the banking industry. We look forward to working with all stakeholders to grow the business further in particular as the bank embarks on its new phase of strategic development.”

“This investment is strongly in line with Norfund’s strategy to support banks targeting entry level and mass-market retail banking, and SMEs, and strengthens our financial institutions investment portfolio in Africa,” he said.

Dr James Mwangi, Group CEO and Managing Director of Equity Group Holdings, added: “Equity has always aimed to be an innovative and inclusive provider of financial solutions. We are excited by the expanded opportunities this development presents, to combine our market leading position with two strong international partners who bring along their substantial resources as well as expertise which we believe will be invaluable in accelerating the growth of our business. This transaction which is currently the largest of its kind in Sub-Saharan Africa brings diversification to Equity’s capital base which is important for the Group.”

Helios’ transaction advisors were Goldman Sachs International and Anjarwalla and Khanna.

Norfund was advised by Norton Rose Fulbright, KPMG and McKinsey & Company.