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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What it may have lacked in terms of volume, private equity activity made up for in terms of value last week in Africa. In the biggest deal of the week,
Actis agreed the sale of its electronic payment processor 'buy and build' platform
Emerging Markets Payments to
Network International for $340 million, giving the emerging markets investor a full exit from the group it helped found in 2010. The transaction marks Network International's first acquisition since its own significant stakeholder change in November last year when
The Abraaj Group sold its 49% holding to
Warburg Pincus and
General Atlantic.
Africa Internet Group added
Goldman Sachs to their roster of blue chip investors with the news that the bank's Special Situations Group is taking part in a €300 million funding round along with the ecommerce group's existing investors . Information on the specific amounts each investor contributed were not available. The capital will be used to strengthen the firm's balance sheet as well as fund the
Rocket Internet-owned company's expansion plans into other markets.
On the fundraising front,
PERE reports that Singapore's sovereign wealth fund
GIC is making its first commitment to real estate in Africa by backing two of the larger real estate funds that are in the market at the moment with $100 million.
Actis and
RMB Westport are both targeting $400 million for their latest real estate sector funds and, while no details were given as to how much of the $100 million each fund will receive, GIC's position as one of the world's most-respected institutional real estate investor suggests the move will catch the eye of the international private real estate markets and arouse additional interest in the continent's real estate opportunity.
Meanwhile, Dubai-based
TVM Healthcare Partners has launched its third emerging markets private equity fund, looking to raise $300 million to put to work in North Africa, the Middle East, India and Southeast Asia. The fund is planning to make up to 12 growth capital investments in healthcare companies and already has a robust pipeline of attractive deals in the sector.
The news that everyone was half-expecting was confirmed last week. To wit,
Barclays is selling down its holdings in Africa over the next 2 to 3 years, giving the Banking group's former CEO Bob Diamond's financial investment platform,
Atlas Mara, the opportunity to acquire certain assets. The
Financial Times reports that Diamond is already in preliminary talks with global investors to raise capital to acquire the Barclays' operations outside of South Africa. Sovereign Wealth Funds in the Middle East and Asia are thought to be the most likely sources of funding. It will be interesting to see how this plays out, given that Atlas Mara's current market cap is only worth about 15% of the value of the assets it is reportedly looking to acquire.
And finally this week, a new report out from the
World Bank and
Bloomberg New Energy Finance in collaboration with the
Global Off-Grid Lighting Association
estimates that sales of off-grid solar products in emerging markets will hit $3 billion by 2020, rising several-fold from the $276 million in sales recorded in 2015. The report finds that increasing numbers of development partners and investors are committing significant capital to businesses, particularly those with pay-as-you-go business models.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
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Goldman Sachs joins €300mln club deal for Jumia-owner AIG's latest round
Image Credit: Pius Utomi Ekpei/Agence France Presse
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Private Equity
Actis exits Emerging Markets Payments in $340mln deal
In a full exit, Actis has agreed the sale of Emerging Markets Payments to Network International in a $340 million deal. The transaction is the first acquisition made by Dubai-based Network International since private equity firms Warburg Pincus and General Atlantic bought a 49% stake
in the payments company from The Abraaj Group in November last year. The deal, which is subject to regulatory approvals, creates the largest payments processor in the Middle East and Africa.
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Private Equity
Goldman joins roster of AIG backers in €300 million deal
Goldman Sachs has joined the ranks of investors in Africa Internet Group, participating in a €300 million or $330 million round led by existing investors MTN and Rocket Internet. French insurer AXA also participated as a first-time investor in this, the latest round for the company, providing approximately $84 million in exchange for an 8% stake in the company. Additional terms of the deal were not disclosed.
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Funds & Fundraising News...
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GIC backs Actis and RMB Real Westport with $100mln
According to a report in
PERE last week, GIC, the Singaporean sovereign wealth fund, is making its first investment commitments to Africa, backing real estate funds managed by Actis and RMB Westport with a combined total of $100 million. The move, by such a well-respected institutional real estate investor, will certainly attract the attention of the international private real estate markets, marking a significant milestone in the asset class's evolution in Africa.
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TVM Capital looks for $300mln for latest healthcare fund
TVM Capital Healthcare Partners, the specialist private equity fund headquartered in Dubai, is looking to raise $300 million for its third healthcare fund, TVM Healthcare III, an emerging markets-focused fund which will look to make up to 12 investments in healthcare companies in the Middle East, North Africa, India and Southeast Asia. The fund, which will focus on growth capital investments, has a pipeline of attractive deals in all three regions.
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This week's issue supported by...
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Off-Grid Solar offers investors a $3bln opportunity
According
to a report by the World Bank and Bloomberg New Energy Finance in collaboration with the Global Off-Grid Lighting Association, sales of off-grid solar products in emerging markets are expected to reach $3.1 billion by 2020. Investment in the sector hit $276 million in 2015, a fifteen-fold increase from 2012, and as the market grows, increasing numbers of development partners and investors are committing significant capital to businesses, particularly those with pay-as-you-go business models.
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Atlas Mara looks to acquire Barclays' non-SA assets
In the wake of Barclays' announcement that it will pull out of Africa over the next two to three years, the
Financial Times reports that the bank's former CEO, Bob Diamond, is in preliminary talks with global investors to raise capital to acquire the bank's operations outside of South Africa. Sovereign Wealth Funds in the Middle East and Asia are thought to be the most likely sources of funding. The move will not be without its challenges given the fact that Atlas Mara's market cap is only about 15% of the £1.5 billion value of Barclays' operations outside South Africa.
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Stanlib on the hunt for private equity partners
Having been unsuccessful at building its own private equity franchises, Stanlib's parent, insurer Liberty, is looking to buy stakes in existing private equity businesses. The asset manager is looking to partner with private equity managers with a Pan-African exposure in response to expanding demand from institutional investors for alternative investment asset classes on the continent.
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Trends
South Africa major beneficiary of impact investing
South Africa is the main beneficiary of impact investing activity on the continent according to the findings of the
latest report from the Global Impact Investing Network and Open Capital Advisors. A high-level report on the findings, the hurdles that impact investors still face plus some recommendations on how to clear them.
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Complimentary Webcast
Power Africa; Frameworks, Opportunities, Outlook
March 31st, 2016
4pm Johannesburg time
With the passage of the
Electrify Africa Act by the U.S. House of Representatives in mid February, a crucial underpinning for President Obama's Power Africa initiative is now in place.
Join
Africa Capital Digest for a complimentary webcast discussion on the framework of the initiative and the opportunities and outlook for investors and companies looking to participate in the promotion of first time access to electricity for people in sub-saharan Africa.
To register your place, please
click here
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Companies, People & Profiles...
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Companies
Gulf Capital teams with Serengeti Capital for dealsourcing
Fresh from holding the first close for its second generation credit fund, Gulf Capital, one of the Middle East's most active alternative investment management firms, is partnering with Accra and London-based investment bank, Serengeti Capital, to expand its private debt business to Sub-Saharan Africa. The exclusive arrangement will see Serengeti Capital advising the fund on credit and mezzanine opportunities in the region.
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People
Kolbe tapped as Actis's new private equity head
Natalie Kolbe has been tapped to head up Actis's private equity business, succeeding Peter Schmid who is planning to step down once the emerging market investor's $780 million Africa Fund IV has been fully invested. Kolbe, who is based in Johannesburg, will work alongside Schmid to jointly lead the private equity team through the remainder of Fund IV's investments to ensure a smooth succession.
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People
Nelson joins Baker & McKenzie's private equity practice
Former partner and head of ENSafrica's Africa practice, Scott Nelson, has joined Baker & McKenzie's Johannesburg office where he will be part of the international law firm's global private equity team. His focus will be on providing African and Africa-focused private equity funds with advice on cross-border deals and investments. His appointment was effective on the 1st of March.
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Investment Associate at CrossBoundary
Based in Bamako, Mali
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Associate for Africa-focused Private Equity firm
Based in London, United Kingdom
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Corporate Finance Partner for Law firm's Africa practice
Based in London, United Kingdom
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Law Associate, M&A and Private Equity, Africa & Emerging Markets
Based in London, United Kingdom
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Investment Associate at Enko Capital
Based in Johannesburg, South Africa
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Investment Associate, Africa Funds at CDC
Based in London, United Kingdom
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Investment Analyst at Enko Capital
Based in Johannesburg, South Africa
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Associate, Private Equity & Advisory for Private Equity firm
Based in Johannesburg, South Africa
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Senior Manager, TAS, Project Finance & Infrastructure at EY
Based in Johannesburg, South Africa
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Associate in Office of the Chief Investment Officer at CDC
Based in London, United Kingdom
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Africa's Investment Prospects - The 2016 Annual Debate
London, April 20th, 2016
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13th Annual AVCA Conference
Addis Ababa, April 25th to April 27th, 2016
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Southern Africa Energy & Infrastructure Summit
Maputo, May 4th to May 6th, 2016
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Africa Financial Services Investment Conference 2016
London, May 5th to May 6th, 2016
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18th Annual Africa Energy Forum
London, June 21st to June 24th, 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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Africa Capital Digest is a product of Rowayton Press
Rowayton, CT 06853, USA
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