March 21st, 2016
The  weekly roundup of Africa's Private Capital news


 

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 acunningham@africacapitaldigest.com
This week's issue supported by...             
The Week in brief...
In an otherwise quiet week, most deals in Africa last week involved the private equity companies themselves. The Abraaj Group announced that is is buying Themis, a 3-year old project development company that provides structuring and financing to economic, industrial and social infrastructure assets in the countries of sub-Saharan Africa. How much they paid for the company remains undisclosed. The deal establishes a dedicated project development arm for Abraaj which will use the private equity group's existing capabilities and resources to originate, develop and manage energy projects from conceptual to operational stages.

The second private equity firm deal involves the formation of EXEO Capital, a 50/50 partnership between the founders and managers of Agri-Vie, the South African Food and Agribusiness investor and STANLIB, the pan-African asset manager. The motivation for the partnership includes STANLIB's goal to add a private equity offering to its alternative investment platform and Agri-Vie's wish to access STANLIB's continental network to help its expansion into Sub-Saharan Africa. EXEO Capital's investment team is made up of Agri-Vie professionals who will continue to manage Agri-Vie's funds, the first of which is fully deployed and entering the harvesting phase, while the second, Agri-Vie II, is currently being raised and is anticipated to hold a $75 million first close early in the second quarter. It's ultimately aiming to raise a total of $175 million with a $200 million hard cap.

Transcentury, the Kenyan infrastructure investor, received a $20 million equity injection from Kuramo Capital Partners last week which will help it settle a convertible bond that becomes due on March 25th. The capital will complement some as yet "undefined funding options" that are required to meet the total $75 million in debt that falls due this coming Friday.

Following a successful pilot of its digital advertising network in filling stations in Lagos, S&T Media is being backed with $1 million by early stage venture capital firm EchoVC Partners.  The company's AdPump service has secured sole distribution rights for the installation of 22-inch in-pump digital screens to provide advertising-supported content to consumers purchasing petrol/gas at the pump. According to PwC, Nigeria's advertising market is currently worth about $500 million a year, and has been growing rapidly at a compound rate of 15.1%. In addition to striking deals with a number of large advertisers and partners, AdPump is also planning to open the digital advertising space to the Nigeria's SME market by rolling out an online purchasing tool for those with smaller advertising-spend budgets.

The  Financial Times ran an interesting profile on one of East Africa's most-talked about companies, M-Kopa. The firm is an off-grid solar power provider that now has more than 300,000 customers, a total which it aims to increase by 4,500 each week between now and 2017. The company has excited the interest of investors, having raised about $30 million in equity and $25 million in debt to date.

And finally, Riscura and the East African Venture Capital Association have published East Africa's  first deal dashboard, showing that the total value of the region's deals in 2015 had almost tripled from the prior year. Kenya saw the most deals of the countries in the region, while the financial services, consumer-related and energy sectors attracted the most capital. While the totals are still small, the trend is upward, for the moment.

To read more on these and other stories from the last week, please scroll down for the abstracts and links.

EchoVC backs S&T Media's digital ad network AdPump with $1 million
Image Credit: S&T Media
Deals News...
Private Equity 
Abraaj buys Themis Energy to boost energy investments  
The Abraaj Group is acquiring Themis Energy for an undisclosed sum in order to extend its investment capabilities in the energy sector in Africa, Southeast Asia and Latin America. The deal establishes a dedicated project development arm for Abraaj which will have full access to the group's existing capabilities to originate, develop and manage energy projects from conceptual to operational stages.
Private Equity 
Agri-Vie and STANLIB team up to form EXEO Capital 
Agri-Vie, the South African private equity investment fund, and STANLIB, the Pan-Africa asset manager have teamed up in a 50/50 partnership to launch EXEO Capital to manage current and potential future private equity vehicles in strategically selected sectors. EXEO Capital's investment team is made up of Agri-Vie professionals who will continue to manage the funds while benefiting from a partnership that allows each firm to expand their alternative investment offerings.
Infrastructure 
Kuramo Capital injects $20mln fresh equity in Transcentury  
Kuramo Capital Partners, the Africa-focused alternative investment management firm based in New York, is backing Kenyan infrastructure investor Transcentury with $20 million. The capital will complement some as yet undefined "other funding options" to settle a convertible bond and to invest in other infrastructure projects. Transcentury has about $75 million of bonds falling due on March 25th.
Venture Capital
EchoVc backs S&T Media's AdPump with $1mln
Early stage venture capital firm EchoVC Partners is backing Nigeria's S&T Media with $1 million. The capital will be used for expansion, product development, hardware acquisition and recruitment following the successful pilot of the company's AdPump service in Lagos. Terms of the deal were not disclosed.  
Funds & Fundraising News...
Private Equity 
Adenia's fourth fund in line for €40mln from DFIs  
The European Investment Bank and the International Finance Corporation are each mulling a commitment of €20 million to Adenia Capital IV, a closed-end 10-year private equity fund that will focus on growth equity opportunities in West Africa and the Indian Ocean region. The fund, which is targeting €200 million, was launched by Mauritius-headquartered Adenia Partners in November 2015. 
Private Equity 
IFC considers backing AFIG Fund II with $15mln  
The International Finance Corporation is considering a $15 million commitment to Advanced Finance and Investment Group's second private equity fund which will target opportunities in East, Central and West Africa. Atlantic Coast Regional Fund II or AFIG Fund II, which is ultimately aiming to raise $300 million, will invest expansion capital in established, successful companies who are looking for growth capital.
This week's issue supported by...             
Duke University 2016
Projects & Portfolio Companies...
Private Equity
Solar Power M-Kopa leapfrogs East Africa's weak infrastructure 
As part of the Financial Times' Boldness in Business report, a profile of M-Kopa, a solar powered system provider that now has more than 300,000 customers, a total which it aims to increase by 4,500 each week between now and 2017. The company has excited the interest of investors, having raised about $30 million in equity and $25 million in debt to date. 
Trends & Perspectives...
Trends
Private Equity deal value in East Africa triples in 2015
Riscura and the East African Venture Capital Association released the first East African Private Equity Deal Dashboard last week, showing that the value of deals in the region almost tripled to $152 million in 2015 from $52 million in 2014. Kenya saw the most deals of the countries in the region, while the financial services, consumer-related and energy sectors attracted the most capital.
This week's issue supported by...             
Elumelu, Okere, Ashenafi among event headliners...
For its 13th year, Columbia University's annual Africa conference has announced an impressive line-up of speakers for its 2016 event in April. Attendees look set to get insightful perspectives for some of the continent's most newsworthy CEOs, including Tewodros Ashenafi of SouthWest Energy and Austin Okere of Computer Warehouse Group.

Rounding out the day-long event on April 2nd, Tony Elumelu of Heirs Holdings and Transcorp will give the closing address, wrapping up an intensive day discussing how to harness and consolidate African innovation's ability and continue to transform people's lives in Africa.

Columbia University's African Economic Forum
April 2nd, 2016
New York  
Companies, People & Profiles...
Companies
Inspired Evolution and Enerji ink MoU 
Enerji, a thermal energy company has, has signed a Memorandum of Understanding with  Inspired Evolution, the South African clean technology investment management firm, to identify opportunities for its technology in Africa. The move is part of Enerji's strategy to expand into Africa, and, according to the West Australian firm's CEO, a partnership with Inspired Evolution gives it access to a firm with an excellent track record of clean technology infrastructure investments in the region.
People
Fuller and Vettivetpillai take up AVCA roles 
The African Venture Capital and Private Equity Association has announced that Vicki Fuller, the New York State Common Retirement Fund's Chief Investment Officer and Sev Vettivetpillai, a Partner at The Abraaj Group, have been appointed to serve, respectively, on the industry association's Advisory Council and its Board.
Current Job Postings...
Highlighted Job...             
Investment Associate at CrossBoundary 
Based in Bamako, Mali
Corporate Finance Partner for Law firm's Africa practice 
Based in London, United Kingdom
Investment Director, Corporate Finance at CDC 
Based in London, United Kingdom
Investment Director, Project Finance at CDC 
Based in London, United Kingdom
Investment Associate at Enko Capital 
Based in Johannesburg, South Africa
Associate, Private Equity & Advisory for Private Equity firm 
Based in Johannesburg, South Africa
Associate for Africa-focused Private Equity firm 
Based in London, United Kingdom
Associate, Development Impact at CDC 
Based in London, United Kingdom
Investment Analyst at Enko Capital 
Based in Johannesburg, South Africa
New to AfCD this week...
Regional Investment Director at leading DFI 
Based in Ogun, Nigeria
Investment Manager, Infrastructure Equity at CDC 
Based in London, United Kingdom
Project Finance & Corporate Finance Associates for law firm 
Based in London, United Kingdom
Upcoming Conferences...
Highlighted Event...             
Southern Africa Energy & Infrastructure Summit  
Maputo, May 4th to May 6th, 2016 
Columbia University's 2016 Africa Economic Forum 
New York, April 2nd, 2016 
Duke University's 2016 Business in Africa Conference 
Durham, NC, April 2nd, 2016
Africa's Investment Prospects - The 2016 Annual Debate 
London, April 20th, 2016 
Zambia International Investment Forum  
Lusaka, April 21st to April 22nd, 2016 
13th Annual AVCA Conference  
Addis Ababa, April 25th to April 27th, 2016 
Africa Financial Services Investment Conference 2016  
London, May 5th to May 6th, 2016 
Global Private Equity Conference 
Washington, DC, May 9th to May 12th, 2016 
18th Annual Africa Energy Forum 
London, June 21st to June 24th, 2016 
And finally...
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

Africa Capital Digest is a product of Rowayton Press 
Customer Service |  thall@africacapitaldigest.com | P.O. Box 141,
Rowayton, CT 06853, USA