The
weekly roundup of Africa's Private Capital news
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Here's this week's wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces for our review. Thank you for being a reader and we hope you continue to find the newsletter useful.
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This week's issue supported by...
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The week in brief...
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If there was a dominant theme in Africa's private capital landscape last week, it would have to be investments in renewable energy companies. The most newsworthy announcement was
Google's planned acquisition of a 12.5% stake in the
Lake Turkhana Wind Power Project from V
estas Wind Systems once the project is completed in 2017. To date, Google has committed $2 billion to 22 clean energy projects around the world, and sees a lot of opportunity in fast-growing emerging markets blessed with rich renewable energy resources.
In the solar sector, South Africa's
Redstone Concentrated Solar Plant project located in the country's Northern Cape is the beneficiary of a $400 million debt facility provided by
OPIC, the U.S. Government's development finance institution.
Once completed, the 100MW clean energy facility will be connected to South Africa's national grid, helping to alleviate the frequent power outages cited as a handicap to the country's economic growth.
At the other end of the size scale, OPIC is also committing $15 million to finance Nova-Lumos, a Nigerian company providing small businesses and residences across Nigeria with off grid solar electricity. Despite its size, the investment is OPIC's largest in the off-grid power sector in Africa, and allows Nova-Lumos to increase power access to the nearly 90 million Nigerians who currently live without connection to the electric grid.
Swicorp's Intaj Capital II is backing
Venezia Ice Group, a Moroccan producer and distributor of artisinal gelato and pastry in a $12.7 million deal. Precise terms of the deal were not disclosed, but the transaction earns the fund a minority stake in the family-owned company. The capital will be used form a planned investment program to expand the company's market share, both domestically and internationally.
On the fund news front,
Acorn Private Equity, the South African SME-focused investor announced that it had exited its final investment from its first fund, earning a net IRR of 39.4% and returning the funds investors 3.1 times their money. The private equity fund is raising its second fund, a R750 million vehicle that will focus on
profitable, family-owned businesses in the food production and processing industry, the utilities, healthcare and waste management sectors as well as infrastructure development projects.
In job changes, a couple of belated but notable announcements that were announced last week. KKR continues to grow its Africa investment capability with the hire of Taku Mutasa as a Principal in the firm's London office. He brings with him a background in Africa private equity investing gleaned from his roles at Helios Investment Partners and, most recently, Development Partners International. He started his new job at the beginning of the month.
And Warren Watkins is relinquishing his private equity leadership at KPMG in South Africa to pursue other interests within the firm. Michael Rudnicki stepped in at the beginning of September to take over as the firm's regional Head of Private Equity. As the head of the firm's Financial Services and M&A Tax and Legal practice in South Africa, Rudnicki advises many of the dominant local and international private equity firms, their portfolio companies as well as local and international banks.
As with every week, you can review these and other stories by
scrolling
down and reviewing the headlines, abstracts and links.
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Swicorp's Intal Capital spends $12.7 million for minority stake in Morocco's Venezia Ice Group Image Credit: Venezia Ice Group |
Private Equity
The Taurus Mining Fund, a global fund manager based in Sydney, Australia, and the IFC have agreed terms in principle to provide $162.5 million in secured debt to refinance and expand the Kipoi Copper Project, a brownfield project in the Democratic Republic of Congo's Katanga Province which is operated by a subsidiary Australian Stock Exchange-listed copper developer and producer Tiger Resources.
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Infrastructure
Google takes 12.5% stake in Lake Turkhana Wind Project
// wsj.com
Google is acquiring a 12.5% stake in Kenya's Lake Turkhana Wind Power Project from Vestas Wind Systems, the Danish wind turbine manufacturer. Terms and value of the deal, were undisclosed. According to the Danish company, Google will acquire the stake once the project is completed in 2017.
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Private Equity
Swicorp's Intaj Capital Fund II is investing $12.7 million to take a minority stake in Venezia Ice, a Moroccan producer and distributor of artisanal gelato and pastry. Additional terms of the deal were not disclosed. The investment is part of the ice-cream manufacturer's program to expand its domestic market share and accelerate its international expansion plans.
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DFI
OPIC is committing $15 million to finance Nova-Lumos, a Nigerian company providing small businesses and residences across Nigeria with solar electricity. The financing allows Nova-Lumos to increase power access to the nearly 90 million Nigerians who currently live without connection to the electric grid.
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Venture Capital
Impact investor Goodwell Investments has backed Nomanini, a South African enterprise payments platform provider in an undisclosed deal. The deal marks the second on-the-ground investment in South Africa for the Dutch investor's $57 million uMunthu Fund which targets startups and high growth companies in the fintech sector.
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Private Equity
Acorn's first fund generates 3.1x return for investors
Acorn Private Equity, the Cape Town-based SME investor, has exited its final holding in Acorn General Fund One,
reporting a net IRR of 39.4% and returning 3.1x to its investors.
Over the life of the fund, Acorn made five investments, focusing on small to mid-cap opportunities in Southern Africa.
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Private Equity
Stellar Capital Partners set to raise R1bln
Stellar Capital Partners, the recently formed investment house in which high-profile dealmaker Chriso Wiese has a 20% interest, is looking to raise R1 billion (approximately $73 million).The firm indicates that it plans to raise the capital through a R400 million underwritten rights offer and a R600 million redeemable preference share offer. The capital has been earmarked for Stellar's immediate investment pipeline which includes proprietary high-yielding credit funds, follow-on investments in existing platforms and certain large strategic investments planned for 2016.
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Private Equity
New SPAC Gaia looking to raise R500mln on JSE
Gaia Infrastructure Capital, a new special acquisition vehicle headed by John Oliphant, is looking to raise a minimum of R500 million (approximately $37 million) when it lists on the Johannesburg Stock Exchange next month. The firm plans to target minority stakes in renewable energy, transport infrastructure, water and sanitation project opportunities in South Africa.
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This week's issue supported by...
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AfCD's 2016 Guide to sub-Saharan Private Equity
"The must-have reference and planning resource for investors and their advisers exploring the private equity investment opportunity in sub-Saharan Africa."
Order Africa Capital Digest's
2016 Guide to sub-Saharan Private Equity today at the pre-publication discount and add the most comprehensive, up-to-date source of information on the leading fund managers located in the African subcontinent. Benefit from:
- Profiles with Names, Emails of each firm's investment professionals
- Details of active funds, preferred deal sizes, regional and sector preferences
- Information on current portfolio companies and projects
- Headquarter and Regional Office contact details
- Expert insight on fund raising, due diligence, execution and exits
- Quick reference indexes of fund managers and portfolio companies by sector
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Projects & Portfolio Companies...
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Infrastructure
OPIC has signed an agreement with SolarReserve and ACWA Power, the developers of South Africa's Redstone Concentrated Solar Plant (CSP) project, to provide $400 million in debt financing to support the development of the planned 100MW clean energy facility in the Northern Cape.
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Private Equity
Catalyst Principal Partners has expanded its holding it Jamii Bora Bank to 11% through a program of buying the bank's shares in the over the counter market following its initial investment in December 2014, when it acquired a 4.4% stake in the multi-tier lender.
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Venture Capital
Digital payments and e-commerce company Interswitch is making a $1 million investment in SlimTrader, a Nigerian turnkey e-commerce solutions provider. The startup will use the capital to ram up its operations and expand the presence of MoBiashara, its flagship product, in the hospitality sector. Interswitch, which launched a $10 million ePayment Growth Fund in February this year, is majority-owned by Helios Investment partners, Adlevo Capital and the IFC.
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Trends - Sovereign Debt
Soft prices for commodities, crimped revenues and slowing economic growth have all combined to sap investors' appetite for African bonds. Ghana's Eurobond sale earlier this month made the country only the fourth to offer yields in excess of 10%. According to Bloomberg data,
average sub-Saharan African dollar yields soared by almost 150 basis to 7.21 percent between the end of April and Oct. 22, while rates on emerging market debt have barely moved. At the same time, issuance has fallen from 2014's highs as currencies depreciate and foreign debt becomes more expensive to pay off.
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Trends - M&A
According to data from Thomson Reuters' latest quarterly investment banking analysis, the value of announced M&A transactions with any sub-Saharan African involvement hit $23.4 billion in the first 9 months of 2015, a 12% increase on the same period last year.
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Perspectives - Business Rescue
While South Africa has developed business bankruptcy and restructuring legislation similar to that found in the USA and Europe, Amanda Visser in
Moneyweb argues that a focus on liquidation rather than restructuring in limiting the success of business rescues the country.
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Companies, People & Profiles... |
Company News
International Law firm DLA Piper announced the opening of its own office in Casablanca last week, a move prompted by the evolution of the city as one of the continent' s major international business hubs and gateways to Africa's rapidly emerging markets. The new office will complement and support the 15 existing Relationship Firms in DLA Piper's Africa network.
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People News
KKR's Africa-focused investment team has grown with the addition, earlier this month, of Takudzwa Mutasa as a Principal focused on opportunities on the continent. He joins them following a 6-year private equity career at two leading Africa-focused firms, Helios Investment Partners and most recently Development Partners International. Prior to that he worked as an investment banker for Citigroup.
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People News
Michael Rudnicki, a partner in KPMG's South African Corporate Tax practice, has taken over as the firm's regional Head of Private Equity following Warren Watkin's decision to pursue other interests within the audit and consulting firm. He took up his appointment on September 1st, 2015, according to a statement released last week.
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Vice President for Africa-focused private equity firm
Based in London, UK
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Principal, Investment Facilitation at CrossBoundary
Based in Bamako, Mali
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Associate, Investment Facilitation at CrossB
oundary
Based in Bamako, Mali
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Energy Investment Associate at CrossBoundary
Based in Nairobi, Kenya
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Investment Director, Infrastructure at Sustainable Asset Manager
Based in Nairobi, Kenya
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Associate for Law firm's Infrastructure and Energy practice
Based in London, United Kingdom
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Analyst for Private Equity firm
Based in Cape Town, South Africa
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Partner for Africa Practice of Global Law firm
Based in London, UK
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Senior Associate, Private Equity at BDI
Based in Accra, Ghana
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TMT Finance & Investment World 2015
London, December 1st, 2015
Read more...
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Private Equity in Africa 2015
London, October 28th, 2015
Read more...
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Powering Africa: the Finance Options
Cape Town, November 5th to November 6th, 2015
Read more...
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Agrique Africa Investment Summit
Accra, November 17th to November 18th, 2015
Read more...
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African Finance & Investment Forum 2015
Cape Town, November 24th to November 26th, 2015
Read more...
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13th Annual African Capital Markets Conference
Cape Town, November 26th to November 27th, 2015
Read more...
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The Global African Investment Summit
London, December 1st to December 2nd, 2015
Read more...
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Accra, December 1st to December 3rd, 2015
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We hope you found the digest to be a useful summary of the major happenings in Africa's private capital markets last week. We'd love it if you shared it with colleagues and business partners. They can sign up for free
here.
Best wishes for a productive week - if you have any tips, suggestions, questions or comments, please get in touch.
All the best,
- Allan
Allan Cunningham
Editor & Publisher
AfCD | Africa Capital Digest
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Africa Capital Digest is a product of Rowayton Press
Rowayton, CT 06853, USA
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