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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For the second week in a row, healthcare sector deals monopolized private equity deal news in Africa last week.
54 Capital added to its portfolio of Ethiopian assets by investing $42 million to take a significant minority stake in
Addis Pharmaceutical Factory, one of the East African country's largest pharmaceutical manufacturers. To date, the London-headquartered firm has invested almost $80 million in opportunities in Ethiopia.
In a West African healthcare deal, the
IFC has teamed up with private equity firm
IFHA Cooperatief, reinsurance giant
Swiss Re and
CIEL Healthcare to invest $66.8 million in
Hygeia Nigeria, a private healthcare company, giving
Satya Capital an exit from their original 2009 investment. Hygeia operates a network of two hospitals and three clinics under the Lagoon Hospitals brand and a health maintenance organization, Hygeia HMO.
A couple of interesting fundraising announcements surfaced last week. A new private equity fund,
Alitheia Identity Fund, garnered its first capital commitment for a planned $100 million SME fund. The fund is a joint venture between two women-led fund managers, Nigeria's
Alitheia Capital and South Africa's
Identity Development Fund, and will put an emphasis on investing in women-owned or women managed SMEs across 10 sub-Saharan countries. The
African Development Bank becomes the fund's first investor putting up $12.5 million in equity.
Meanwhile
Gulf Capital held a $175 million first close for its second credit and mezzanine fund last week. The alternative investment firm is seeding the fund itself, hoping, come the final close, to have raised $250 million from a range of institutions to invest in financing solutions for private equity sponsors and middle market companies in the Middle East and North Africa, sub-Saharan Africa and Turkey.
In other significant fund news,
RMB Westport, the private equity real estate investor, is looking to raise $450 million for its second real estate development fund. The IFC's Board of Directors is meeting at the end of January to consider whwther to make a $40 million equity commitment to the fund which will target investments in retail, office and industrial properties in Nigeria, Ghana, Angola and Côte d'Ivoire.
Atlas Mara announced that its deal to acquire an equity stake in
Banque Populaire de Rwanda has now closed, allowing the financial services investment vehicle to start the process of integrating the Bank with
BRD Commercial Bank, its other Rwandan portfolio holding which it acquired in October 2014. Atlas Mara will own 62% of the combined entity, which will operate under the Banque Populaire de Rwanda brand.
And finally this week, a new report published by the
Global Impact Investment Network and
Dalberg finds that West Africa is becoming more and more of an attractive investment destination for impact investors. In particular, the energy, financial technologies and agriculture sectors offer the most attractive investment opportunities in the region, which currently has a total of 46 active impact investors.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
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54 Capital backs Addis Pharmaceutical Factory with $42 mln
Image Credit: 54 Capital
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Private Equity
Satya Capital exits Hygeia in $67mln deal
IFC, the American DFI, IFHA Cooperatief, an Africa-focused healthcare private equity fund, Swiss Re, the reinsurance company and CIEL Healthcare are making a $66.8 million
investment in
Hygeia Nigeria, a
Satya Capital
-backed private healthcare company in Nigeria. Additional terms of the deal were not disclosed. The new investment will be used to improve healthcare infrastructure and increase access to quality healthcare services to the Nigerian market.
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Private Equity
54 Capital backs APF
with $42mln
Africa-focused private equity firm, 54 Capital, is investing $42 million to take a significant minority stake in Addis Pharmaceutical Factory or APF, a leading pharmaceutical manufacturer in Ethiopia. The investment will be made in two tranches-an initial investment of $30 million with an option to invest an additional $12 million-and the capital will be used to expand the company's domestic and international market penetration by broadening its product portfolio, improving its production capacity and obtaining a WHO certificate.
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Private Equity
Centum looks for more shares in Kenyan bottler
The Kenyan Investment firm is looking to expand its 51% holding in Almasi Beverages, the unlisted holding company that was established in 2011 following the roll-up of Mount Kenya Bottlers, Rift Valley Bottlers and Kisii Bottlers, three formerly-independent Coca Cola bottling plants. Nation Media Group's Business Daily reports that Centum is making a limited offer to a group of Almasi's minority shareholders.
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Private Equity
Xterra to back Nairobi property with $114mln
Xterra Capital Advisors, which is in the process of raising up to $600 million in combined debt and equity, is reportedly planning to invest $114 million in 90,000 square meters of high-end mixed used development in Nairobi, which will be completed in 2018. The Mauritian property fund, which announced its fundraising plans in November, will invest 34% of the combined capital in Kenya's property market, with other allocations planned for Nigeria, Ghana, Rwanda, South Africa and Uganda.
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This week's issue supported by...
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Funds & Fundraising News...
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Private Equity
IFC considers backing RMB Westport's $450mln Fund II
The IFC's Board of Directors is meeting at the end of January to consider approval of a $40 million equity investment in RMB Westport's second real estate development fund. The fund, which has a hard cap of $500 million, will target investments in retail, office and industrial properties in sub-Saharan Africa, with a particular emphasis on the countries of Nigeria, Ghana, Angola and Côte d'Ivoire.
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Private Equity
Gulf Capital holds $175mln close for second credit fund
Gulf Capital held a $175 million first close for its second credit and mezzanine fund last week. The Abu Dhabi-head quartered alternative investment manager is looking to raise a total of $250 million, with a $300 million hard cap, which will provide financing solutions to private equity sponsors and non-cyclical, growth middle market companies with revenues between $25 million and $250 million in the Middle East and North Africa, Sub-Saharan Africa and Turkey.
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Private Equity
AfDB commits $12.5mln to Alitheia Identity Fund
Alitheia Identity Fund, a new private equity fund, has received a $12.5 million commitment from the African Development Bank as it launches its fund raise.
The investment is the first for the new fund, a joint venture between Nigeria's Alitheia Capital and South Africa's Identity Development Fund, which is looking to raise $100 million to invest in established, high-growth SMEs in 10
sub-Saharan
companies.
The new fund is
aiming to hold a first close at
between $30 million and $50 million during the second quarter of
2016, with the
final close
expected to take place a year later.
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Projects & Portfolio Companies...
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Atlas Mara completes BPR deal
Atlas Mara has announced the completion of its deal to acquire an equity stake in Banque Populaire de Rwanda. In November, the sub-Saharan financial services platform, announced that it was investing $21 million in BPR, and, that once it had received the necessary regulatory approvals, would merge the bank with BRD Commercial Bank, its other Rwandan portfolio holding which it acquired in October 2014. Atlas Mara will own 62% of the combined entity, which will operate under the Banque Populaire de Rwanda brand.
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GetBucks's IPO planning to list end of week
GetBucks
Zimbabwe, a
m
icrofinance company owned by
TLG Capital-backed GetBucks Ltd and
Brainworks Capital and is planning to list on Zimbabwe's Stock Exchange on January 15
th
in a $3.2 million IPO
, the first o
n the
ZSE
in 7 years.
Proceeds from the IPO will be used to pay for the expenses of the offer as well as to provide the firm with $2.9 million in working capital.
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African Rainbow Capital and Sanlam
's joint investment
approved
South Africa's Competition Commission has given the go-ahead to Sanlam and African Rainbow Capital to make their joint investment in insurance broker Indwe Broker Holdings.
The R200 million deal is the first joint investment the two companies have
embarked upon., with African Rai
nbow Capital owning 51% of Indwe, while Sanlam will have a 25% interest.
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Perspectives
West Africa is becoming more attractive to impact investors
according to a report
published by
the Global Impact Investment Network and Dalberg.
The e
nergy, financial technologies and agriculture
sectors offer the most attractive investment opportunities in the region, which currently has a total of 46 active impact investors.
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| Companies, People & Profiles... |
Company News
BK One, a private equity investment vehicle founded by Basileus Capital and Kwanda Capital Investments appears to be in trouble. South Africa's Business Day reports that an interim report released in December shows that the company is no longer able to continue as a "going concern".
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People News
FMO has announced that Nanno Kleiterp, the Dutch development bank's Chief Executive Officer will step down from his position in October, following the expiration of his second 4-year term leading the institution. FMO's Supervisory Board is starting the process of searching for his successor.
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People News
David Johnson has been promoted to head Africa Finance Corporations risk management function, succeeding Roger Ellender, who has reached the development finance institution's mandatory retirement age as Chief Risk Officer. Previously Johnson had served as AFC's Vice President of Risk Management when he joined the institution 5 years ago, following a 15-year career in which he had worked for various international banks as a risk manager, trader and structurer.
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Governance Advisor and Country Head roles at Tony Blair AGI
Based in London, UK
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Vice President for Africa-focused Private Equity firm
Based in London, UK
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Corporate Associate at Norton Rose Fulbright
Based in London, UK
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CFO/Financial Controller at Emerging Markets 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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COO for entrepreneurial Investment Bank
Based in Lagos, Nigeria
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Investment Director, Private Investments at Cambridge Associates
Based in London, UK
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Director, African Investments at LeapFrog Investments
Based in Johannesburg, South Africa
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New to Africa Capital Digest this week...
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Senior Associates/Associates for Quantum Investments
Based in Port Louis, Mauritius
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Director, African Investments at LeapFrog Investments
Based in Johannesburg, South Africa
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SAVCA's Private Equity in Southern Africa
Stellenbosch, February 17th to February 18th, 2016
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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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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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Africa Capital Digest is a product of Rowayton Press
Rowayton, CT 06853, USA
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