Kenyan private equity group Catalyst Principal Partners has taken a majority interest in EFFCO, a Tanzania-based heavy equipment rental logistics services provider, according to All Africa. The value of the stake buy was not disclosed in the said report.

According to Rajal Upadhyaya, the managing director of Catalyst, the company invested in EFFCO because of its big potential for growth. The Kenyan firm wants to invest in high-growth companies in eastern Africa. This is Catalyst's fourth investment transaction within the area since its KES10.8-billion private equity funding, the report detailed.

Catalyst typically invests $5 million to $20 million in every investee company. The duration of each investment is usually four to six years, the report explained.

The private equity group has backed Tanzania-based companies including oral care firm ChemiCotex and tea packaging firm Chai Bora. Catalyst Principal Partners has also invested in Ethiopia-based mineral water bottling giant Yes Brands, All Africa reported.