The
weekly roundup of Africa's Private Capital news
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Here's the latest weekly wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces.
Thanks you being a reader and we look forward to continuing to keep you informed on the private capital investment themes, deals and fundraisings in Africa.
We'd be delighted if you shared it with any interested colleagues and/or partners. If they would like to receive their own weekly copy, they're more than welcome to sign up here.
As always, if you have any tips, suggestions or questions, please reach out to Allan Cunningham at
[email protected]
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This week's issue supported by...
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There was a distinct sense of déjà vu about private equity deals in Africa last week. As with the prior week,
The Abraaj Group
made some headlines, this time announcing a deal that gives it a stake in
Société d'Articles Hygiénique
or SAH, the owner of the Lilas suite of products, a household name in personal care products in Tunisia and other North African markets. SAH is publicly listed these days, having been one of
Emerging Capital Partners'
portfolio companies until they exited it via the company's IPO on the Tunisian Stock Exchange in late 2013. Abraaj acquired its interest by buying a 49% stake in
JM Holdings, a majority owner of producer of disposable household and personal care products.
And Old Mutual Group was making deal news again this week, this time through the insurer's property division. In a $62 million debt/equity deal, Old Mutual Property is backing Kenya's Two Rivers Development, acquiring a 10% equity stake in newly issued stock and providing a loan that is convertible into an additional 40% equity holding. It's the first real estate transaction in East Africa for the Old Mutual Group, and will be the company's largest real estate holding outside South Africa.
The big news on the fundraising front was Prudential's commitment of $375 million for a new investment platform to be managed by LeapFrog Investments. The vehicle will target deals in the life insurance sector and will look to deploy the capital over the next three to five years in the continent's more buoyant economies, notably Kenya, Nigeria and Ghana.
Kibo Capital
held the final close for its second generation fund which will make growth equity investments in SME and Mid-market companies across a number of sectors. Kibo Fund II held its first close at $50 million in July 2014, some 30% of which was raised from a mix of pension funds, family offices and other institutional investors, while the balance of the capital was provided by the International Finance Corporation, the African Development Bank, DEG, CIEL and Anglo Mauritius.
In addition to the deal and fundraising news items already covered in this piece, both Abraaj and LeapFrog made additional announcements last week. Abraaj revealed that it no longer owned a stake in Integrated Diagnostics Holdings or IDH in November last year following a gradual exit from the investment over the prior year. In December 2014, Abraaj sold a 21% stake in the Egyptian diagnostics service provider to private equity investor, Actis, followed by a more significant stake sale in May 2015 when IDH was listed on the London Stock Exchange. Details on how much the sale returned to Abraaj were not revealed.
And in the latest of a series of recent senior executive hires and moves the impact investor has made to support its growth, LeapFrog Investments has announced the appointment of two new partners. Karima Ola, whose career has included positions at African Development Corporation or ADC and Nick Moon, who originally joined the firm in 2012 have both been appointed to the firm's partnership ranks.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
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Abraaj takes stake in Société d'Articles Hygiéniques, producer of Lilas-branded products
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Private Equity
Abraaj takes stake in Tunisia's SAH
In the latest deal for its second North African Fund, private equity investor The Abraaj Group has acquired a 49% stake in JM Holding, a majority owner of publicly-listed Société d'Articles Hygiéniques or SAH, a producer of disposable household and personal care products in Tunisia. The JM Holding stake was acquired from the company's founders and financial terms of the deal were not disclosed.
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Private Equity
Old Mutual Property backs Two Rivers with $62mln
Old Mutual Property, the South African's insurer's property investment, development and management division, is backing Kenya's Two Rivers Mall development in a $62 million deal. The transaction, which is structured as a mix of equity and debt made up of 10% in newly issued stock and a loan that is convertible into an additional 40% equity stake, values the development at approximately $244 million.
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Private Equity
Abraaj sells remaining Integrated Diagnostics stake
The Abraaj Group announced that it sold its remaining shares in Integrated Diagnostics Holdings or IDH in November 2015, fully exiting its position in the Integrated Diagnostics Holdings in the Egyptian diagnostics service provider. Details on how much the sale returned to Abraaj were not disclosed.
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Private Equity
Greystone backs Feedmaster with $2.4mln
Greystone Partners, an investment holding company focused on private equity investments, is spending E37 million (approximately $2.4 million) to acquire acquired a significant minority stake in Feedmaster, an animal feed manufacturer in Matsapha, Swaziland. The deal, which was first explored in 2014, was finalized in December 2015.
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Funds & Fundraising News...
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Prudential backs LeapFrog with $350mln
Prudential, the U.S. insurance giant, is partnering with emerging markets private equity investor, LeapFrog Investments, in a $350 million investment vehicle which will target life insurance sector deals in Africa. The new investment platform, which will be managed outside LeapFrog's existing buyout funds, will look to deploy the capital over the next three to five years in the continent's more buoyant economies, notably Kenya, Nigeria and Ghana.
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Kibo Capital holds final close at $58mln
Kibo Capital Partners has held the final closing for its second fund, Kibo Fund II, at $58 million adding Nile Holding Company for Development and Investment, an Egyptian investment company to its diverse roster of investors. The private equity fund will make growth equity investments in SME and Mid-market companies across a number of sectors including financial services, healthcare, education and light manufacturing in East and Southern Africa as well as the Indian Ocean islands.
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Trends
Debt issuance in SSA falls to a three-year low
According to Thomson Reuters quarterly analysis of investment banking data published last week, debt issuance in Africa fell by 22% in 2015, sinking to its lowest level in 3 years. Rising interest rates in the USA, slowing economies at home and the slump in commodity prices have all combined to dampen the appetites of African states and companies to tap the fixed income markets following a record year for debt issuance on the continent in 2014.
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Perspectives
PPPs represent Africa's best chance for growth
Report of a panel discussion at Davos last week where state and institutional leaders discussed the need for Africa's governments and private sector to work together to boost all sectors for their economies. To get there, government's need to create "an enabling environment for the private sector" according to the African Development Bank's new President, Akinwumi Adesina.
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| Companies, People & Profiles... |
Company News
According to a report in the Wall Street Journal, Barclays is planning to sell some of its 62% stake in Barclays Africa as the bank's new CEO, Jes Staley, looks to refocus the bank on a narrower range of profitable activities. As investor appetite for emerging market assets shrinks, it's unlikely that Barclays will be able to find an outright buyer for its Africa business according to some analysts.
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People News
Karima Ola and Nick Moon join LeapFrog's partnership
In the latest of a series of recent senior executive hires and moves the impact investor has made to support its rapid growth, LeapFrog Investments has announced the appointment of two executives to its partnership. Karima Ola, whose career has included positions at African Development Corporation and Nick Moon, who originally joined the firm in 2012, have both been appointed to the firm's partnership ranks.
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Senior Principal, EMEA Private Equity at Teachers' Private Capital
Based in London, UK
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COO for entrepreneurial Investment Bank
Based in Lagos, Nigeria
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Vice President for Africa-focused Private Equity firm
Based in London, UK
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Principal for Africa-focused Private Equity firm
Based in London, UK
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Analyst at Emerging Markets Private Equity firm
Based in London, UK
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Director, African Investments at LeapFrog Investments
Based in Johannesburg, South Africa
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Senior Associates/Associates for Quantum Investments
Based in Port Louis, Mauritius
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Director of Origination at Weiji Capital
Based in Cape Town, South Africa
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Senior Private Equity Dealmaker at Investment Bank
Based in Johannesburg, South Africa
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Senior Private Equity Manager at fund
Based in Johannesburg, South Africa
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Associate for Africa practice at leading commercial law firm
Based in London, UK
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Associate for South African Private Equity firm
Based in Johannesburg, South Africa
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New to Africa Capital Digest this week...
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Chief Investment Officer at Audaces Impact
Based in London, UK
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Investment Manager, Timber & Forestry at QG Investments
Based in Port Louis, Mauritiua
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Emerging Markets Manager, Infrastructure Financing at Deloitte
Based in Arlington, USA
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Washington, DC, January 27th to January 29th, 2016
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African Diaspora Investment Forum
Santa Clara, California, January 29th to January 30th, 2016
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US-Africa Business Summit 2016
Addis Ababa, February 1st to February 4th, 2016
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Investing in African Mining Indaba
Cape Town, February 8th to February 11th, 2016
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Egypt Energy Investment Summit
Cairo, February 16th to February 18th, 2016
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SAVCA's Private Equity in Southern Africa
Stellenbosch, February 17th to February 18th, 2016
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Johannesburg, February 17th to February 19th, 2016
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13th Annual AVCA Conference
Addis Ababa, April 25th to April 27th, 2016
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Africa Financial Services Investment Conference 2016
London, May 5th to May 6th, 2016
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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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