AgDevCo invests in East Africa’s Victory Farms

AgDevCo closed a multimillion dollar mezzanine debt investment in Victory Farms, a rapidly expanding aquaculture company in Kenya. AgDevCo’s investment will support the company’s growth and impact, including the construction of a feedmill and expansion into new African nations.

AgDevCo Logo
AgDevCo Logo (PRNewsfoto/AgDevCo)

Victory Farms was founded in 2015. It aims to provide affordable protein for consumers in a more sustainable manner by growing native tilapia species. The company is a vertically integrated enterprise that operates its own hatchery and nursery ponds as well as deep water cages throughout Lake Victoria. These include a processing plant, distribution network that includes 45 retail locations owned by the company, and a processing plant. Its direct customers include several thousand market women who purchase small quantities of fish from Victory Farms outlets. They then cook the fish at their local food markets.

Victory Farms currently sells 1.5 million fresh fish per month. The best aquaculture practices are used to grow the fish – no antibiotics. The company is committed to restoring and maintaining the local ecosystem as part of its operations. This includes continuous work to improve land and water biodiversity.

AgDevCo is the largest shareholder in Victory Farms, along with other shareholders Ceniarth and CIVF, DOB Equity Msingi East Africa MCE Social Capital and DEG. Law3SixtyKieti Law LLC in Kenya and Fieldfisher in the Netherlands have supported AgDevCo in this transaction. Charles Russell Speechlys has also been supporting AgDevCo. CrossBoundary Advisory (UK), provided commercial due diligence services under the USAID Kenya Investment Mechanism Program. Sidley Austin LLP provided pro-bono legal assistance to Victory Farms, while Open Capital Advisors assisted with financial modeling.

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