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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It wasn't until the end of the week that the most notable private equity news in Africa last week hit the newswires. In what will be the first consolidation in the continent's mobile telecoms infrastructure sector,
IHS Towers is buying
Helios Towers Nigeria and its portfolio of 1,211 towers. Both companies count leading private equity funds and infrastructure investors among their backers--
Emerging Capital Partners and
Wendel are investors in IHS while HTN's stakeholders include
Helios Investment Partners and
Pembani Group. While financial terms of the deal were not disclosed, the deal will certainly one of the largest of the year and is expected to close in the second quarter.
In another piece of significant news,
Business Day reports that
Rockwood Private Equity is looking to raise as much as $500 million for its second fund when it goes to market later this year. Rockwood's first fund performed well, delivering a 30% internal IRR. The South African fund manager's Managing Partner, Andrew Dewar, tells the business news provider that the new fund will target opportunities in the country's industrial and services sectors.
Last week was also one of the busier deal weeks of the recent past.
Medu Capital Partners announced two investments for its R1 billion third fund, acquiring outright ownership of two well-established companies--
Universal Paints, a manufacturer of decorative paints and coatings and
Elite Truck Hire, an equipment and logistics company--and spending a combined R450 million or $29.5 million for both.
In a growth capital deal, TMT investor
Convergence Partners is investing an undisclosed amount to take a significant minority stake in
inQuba, a managed customer experience software platform. The capital is being earmarked to help accelerate inQuba's expansion plans further, particularly in the United States.
Meanwhile
AfricInvest announced a deal in East Africa's
Silafrica Plastics and Packaging International, a company with operations in Tanzania, Kenya, Ethiopia, Uganda and India. The investment, which is being made through AfricInvest's €200 million third fund, will provide Silafrica with the capital it needs to expand its product line, push into new markets in Africa and capture some of the significant growth anticipated in the plastics and packaging sector in the coming years.
At the smaller end of the deal scale,
PCM Captal Partners announced details of an investment it made through its West Africa Emerging Markets Growth Fund in late December last year where it is investing 4.1 million euros for a 49% stake in a newly established subsidiary of pharmaceutical distributor
Ubipharma. The capital will be used to help the company expand its distribution capacity and network.
From
Moneyweb this week, a summary of the private equity activity that has taken place so far this year. Despite the headwinds buffeting broader emerging market investing, the asset class is showing some reliance, a trend that had strong potential to continue.
And finally, in company news,
Old Mutual is splitting itself into 4 separate business units in a bid to save the costs of being in part of a larger group. The process of separating the group into standalone businesses is expected to be completed by 2018.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
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| IHS Towers buys Helios Towers Nigeria in Africa's first mobile infrastructure consolidation |
Private Equity
Medu spends $29.5mln in paints and logistics deals
Private Equity firm Medu Capital is tapping its R.1 billion Medu III fund to acquire outright ownership of two South African companies, Universal Paints and Elite Truck Hire, in deals worth a combined total of R450 million, (approximately $29.5 million). Additional terms of the deal were not disclosed.
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Private Equity
AfricInvest backs East Africa's Silafrica
AfricInvest, the private equity firm with more than $1 billion in assets under management targeting mid-cap opportunities in both North and Sub-Saharan Africa, is backing Silafrica Plastics and Packaging International, a plastics and packaging group with operations in Tanzania, Kenya, Ethiopia, Uganda and India. Terms of the deal were undisclosed.
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Private Equity
Convergence backs software play inQuba
Convergence Partners, the private equity investor based in Johannesburg, is making a growth capital investment in inQuba, a managed customer experience software platform in an undisclosed deal. The capital injection will help inQuba, which already has operations in Australia, South Africa, the United Kingdom and the United States, accelerate its global expansion plans further. Once closed, the deal gives Convergence a significant minority stake in the software company.
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Private Equity
Equator Capital takes significant minority stake in Fortis
Equator Capital Partners, the Chicago-headquartered impact investor, is taking a significant minority position in Nigeria's Fortis Microfinance Bank, a publicly-listed financial institution providing banking products and services to the country's micro, small and medium scale enterprises. Financial terms of the deal were not disclosed.
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Private Equity
WAEMGF backs Ubipharm with €4.1 mln
Last week, private equity fund manager PCM Capital Partners announced details of an investment it made through its West Africa Emerging Markets Growth Fund in late December last year in Ubipharm, a €572 million distributor of pharmaceutical products in Francophone Africa. The deal establishes Ubipharm Development, a new subsidiary company for Ubipharm which will have an initial presence in Guinea and Madagascar. WAEMGF is investing €4.1 million for a 49% stake in UD, with Ubipharm holding the balance of the new company.
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Infrastructure
MENA Infrastructure sells AICT in debut exit
In one of a pair of deals marking its debut exits, the $300 million MENA Infrastructure Fund has announced the sale of its 30.33% stake in Alexandria International Container Terminals or AICT to Hutchison Port Holdings in an undisclosed deal. The fund's manager, MENA Infrastructure, which is based in Dubai, was established by HSBC,
Fajr Capital and Waha Capital in 2007.
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Funds & Fundraising News...
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Rockwood looking for $500mln for next fund
According to reports last week, Rockwood Private Equity is looking to raise its next fund towards the end of the year. Andrew Dewar, the firm's Managing Partner has told
Business Day that the buyout company is looking to raise as much as $500 million to put to work in South African industrial and services companies. Rockwood's first fund delivered an internal IRR of 30%, which should help winning commitments for the new fund once it starts being raised later this year. London-based FirstPoint Equity has won the mandate to lead the fundraise.
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This week's issue supported by...
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Projects & Portfolio Companies...
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IHS agrees to acquire Helios Towers Nigeria
In what marks the first consolidation of mobile infrastructure companies in Africa, IHS Towers is acquiring a little over 1200 Towers located in Nigeria from Helios Towers Nigeria. Financial terms of the transaction were not disclosed. Both companies count some of the continent's leading private equity firms and international development finance institutions among their backers. The deal is expected to close in the second quarter of 2016.
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Infrastructure
AIIM Hydroneo announces plans for hydro power
AIIM Hydroneo, the 50/50 joint venture between private equity infrastructure investor African Infrastructure Investment Managers (AIIM) and MECAMIDI, a manufacturer and developer of small and medium hydro plant power equipment, have announced plans to develop, build and operate a number of hydroelectric power plants in Gabon.
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Trends
Private Equity kicks off to a good start in 2016
Private Equity investment activity in Africa is showing some resilience in the face of the broad-based investor retreat from emerging markets.
Moneyweb gives us a summary of the deal making and fundraising activity that has taken place in the first couple months of 2016. Having built up a large war chest for deals and as valuations soften and vintage funds need to be harvested, it looks as if there's a good chance the trend will continue.
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Perspectives
PPPs gaining foothold as financing mechanism in Africa
As Public-private partnerships are gaining traction as a financing mechanism in Africa, a review of the typical structures used, the advantages to Africa's governments in entering into PPP agreements, and the need to mitigate risk effectively. Given the extent of the infrastructure gap on the continent, the potential to expand their use is enormous but dependent on a number of criteria being in place.
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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
Old Mutual Group to split in four
After a week of mounting speculation, it was confirmed on Friday that Old Mutual is splitting itself into four core businesses in a bid to free them from the costs associated with being part of the larger group. It's expected that the process of separating the Group into standalone businesses will be completed by the end of 2018.
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People
Freshfields promotes Cant and Mpubani to partnership
Further bolstering the firm's Africa practice, magic circle law firm Freshfields Bruckhaus Deringer announced last week that Rob Cant and Gabriel Mpubani are being promoted to the firm's partnership. Their appointments will be effective on May 1st.
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Investment Analyst at Enko Capital
Based in Johannesburg, South Africa
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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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Associate, Private Equity & Advisory for Private Equity firm
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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Investment Director, Corporate Finance at CDC
Based in London, United Kingdom
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Investment Director, Project Finance at CDC
Based in London, United Kingdom
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Associate for Africa-focused Private Equity firm
Based in London, United Kingdom
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Associate, Development Impact at CDC
Based in London, United Kingdom
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Africa Financial Services Investment Conference 2016
London, May 5th to May 6th, 2016
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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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Global Private Equity Conference
Washington, DC, May 9th to May 12th, 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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