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
[email protected]
|
|
This week's issue supported by...
|
|
Bets on Africa's expanding middle class dominate deal activity in Africa last week. And for those market commentators fretting about the lack of a market for private equity secondary sales on the continent, there were signs that it may be becoming more robust.
Mediterrania Capital Partners sold its 35% stake in Cellulose Processing or CEPRO, an Algerian manufacturer and distributor of baby diapers and feminine sanitary pads, to leading emerging markets private equity investor The Abraaj Group in an undisclosed deal. Robust population growth, rising incomes and low product penetration rates make the North African country and this company an attractive investment for Abraaj.
In another deal inspired by the continent's consumer story, Old Mutual Private Equity invested upwards of R200 million in In2Food, a South African manufacturer of
convenience foods. In December, you may remember, OMPE acquired a 70% stake in MoreCorp, the South African Golf and Cycling retailer, in another bet on the resilience of the country's upper middle class in the face of the current economic downturn.
Meanwhile Vantage
Capital has fully exited its investment in Trenstar, a South African returnable packaging company, in a deal with private equity fund Kleoss Capital, Leaf Capital and Trenstar's management team. Both Kleoss and Leaf are first time equity investors in the firm.
The mezzanine fund manager originally invested in Trenstar in 2010, providing a total of R85 million (or $12 million at 2010 exchange rates) in a combination of expansion capital and management buyout funding. How much they realized with this particular exit was not disclosed, although
to date, the investor states that it has now exited seven investments from is first two mezzanine funds, yielding proceeds of almost R2.2 billion of $131 million.
At the venture end of the scale, Silvertree Capital, the investment arm of
South Africa-based Silvertree Internet Holdings, announced that it has $10 million earmarked for investment in African e-commerce and tech startups in 2016, doubling the level of investment in acquisitions and business-building initiatives the consumer internet investment platform made in 2015. Preferring to invest in deals from $50,000 to several million dollars in size, the investment company will look for deals in a number of consumer-related sectors, including ecommerce, ad technology, comparison sites, travel, food technology and classifieds, primarily in South Africa, Kenya and Nigeria.
Finally, a couple of notable job announcements last week. Jin-Yong Cai, the former head of the International Finance Corporation, is joining TPG Capital to help develop the global alternative investment firm's investment push into emerging and frontier markets.
His appointment is the latest in a set of moves by TPG Capital to boost its efforts in developing markets and Africa in particular within the last few months. In June 2015, the firm announced a tie-up with Mo Ibrahim's Satya Capital to invest up to $1 billion on the continent, and made other high-profile hires including the appointment of Donald Kaberuka, the former head of the African Development Bank as a Senior Advisor and Yemi Lalude, the founder of Adlevo Capital, as the Managing Partner for Africa.
And f
ormer senior GE Capital executive Sherwood Dodge is joining The Abu Dhabi Investment Authority as the sovereign wealth fund's global private equity head. At ADIA, which has $700 million under management, he will spearhead the wealth fund's private equity strategy, overseeing the institution's investments in private equity funds, principal investments, secondary fund investments and private credit.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
|
 |
|
OMPE buys significant minority stake in South African convenience foods business In2Food
|
Private Equity
Abraaj acquires MCP's minority stake in CEPRO
In the latest deal for its $375 million second North Africa-dedicated fund, private equity investor The Abraaj Group has acquired a significant minority stake in Cellulose Processing or CEPRO. The deal provides Mediterrania Capital Partners with a full exit of its 35% holding in the Algerian manufacturer and distributor of baby diapers and feminine sanitary pads. Additional terms of the deal were not disclosed.
|
Private Equity
Old Mutual buys significant minority stake in In2Food
In the second deal in as many months for its R4 billion fourth fund, Old Mutual Private Equity has acquired a significant minority stake in In2Food, a convenience food manufacturing business based in South Africa. In December, OMPE acquired a 70% stake in MoreCorp, the South African Golf and Cycling retailer, in another bet on the resilience of the country's upper middle class in the face of the current economic downturn.
|
Private Equity
Vantage exits Trenstar to Kleoss, Leaf and Management
Vantage Capital has fully exited its investment in Trenstar, a South African returnable packaging company, in a deal with private equity fund Kleoss Capital, Leaf Capital and Trenstar's management team. Both Kleoss and Leaf are first time equity investors in the firm. Financial terms of the transaction were not disclosed.
|
|
Funds & Fundraising News...
|
Silvertree has $10mln earmarked for acquisitions
Silvertree Capital, the investment arm of South Africa-based Silvertree Internet Holdings, has $10 million earmarked for investment in African e-commerce and tech startups in 2016, doubling the level of investment in acquisitions and business-building initiatives the consumer internet investment platform made in 2015.
|
Trends
Tech startups in Africa raise $185mln in 2015
A summary of a recently released report from Disrupt Africa which finds that tech startups raised over $185 million in 2015, with South Africa, Nigeria and Kenya being the countries where the lion's share of the investments were made.
|
Perspectives
Japanese quality beats Chinese speed in Africa
While the results of Japanese projects in Africa are praised, Chinese projects are still seen as being inferior in quality, but improving. A quick review of the competition in Africa between these two market participants and how it is evolving.
|
Perspectives
Economic slump's impact on African private equity
While the long-term nature of private equity investment makes activity in the asset class more resilient to macro-economic shocks, the slowdown of the global economy will have some impact on private equity deal trends in the coming year. Rory Ord from Riscura gives a brief overview to
How we made it in Africa.
|
Time's running out to get the best deal on
Africa Capital Digest's 2016 Guide to sub-Saharan Private Equity
With publication expected in the next couple of weeks, make sure you place your order today for
Africa Capital Digest's 2016 Guide to sub-Saharan Private Equity to ensure you enjoy the 30% pre-publication savings on this comprehensive, up-to-date source of information on the leading fund managers located in the African subcontinent. It will include:
- Fund profiles with Names, Emails of each firm's investment professionals
- Details of active funds, preferred deal sizes, regional and sector preferences
- Information on current portfolio companies and projects
- Headquarter and Regional Office contact details
- Quick reference indexes of fund managers and portfolio companies by sector
"The must-have reference and planning resource for investors and their advisers exploring the private equity investment opportunity in sub-Saharan Africa."
Click here to order today, risk-free and lock in the pre-publication rate.
|
| Companies, People & Profiles... |
People News
Jin-Yong Cai, the former head of the International Finance Corporation, is joining TPG Capital to help develop the global alternative investment firm's push into emerging and frontier markets. In what is a new role for the firm, Cai will work across TPG's platforms to source opportunities and projects across Asia, Africa and Latin America. He starts as a Partner with the firm on February 1st, 2016.
|
People News
ADIA appoints Dodge to head up private equity
Former senior GE Capital executive Sherwood Dodge is joining The Abu Dhabi Investment Authority as the sovereign wealth fund's global private equity head. He joins following a more than 25-year career at GE, where he most recently served as Deputy CEO of the American company's auto finance and credit card joint venture with Korean car maker Hyundai.
|
COO for entrepreneurial Investment Bank
Based in Lagos, Nigeria
|
Governance Advisor and Country Head roles at Tony Blair AGI
Based in London, UK
|
Vice President for Africa-focused Private Equity firm
Based in London, UK
|
Principal for Africa-focused Private Equity firm
Based in London, UK
|
Analyst at Emerging Markets Private Equity firm
Based in London, UK
|
Director, African Investments at LeapFrog Investments
Based in Johannesburg, South Africa
|
Senior Associates/Associates for Quantum Investments
Based in Port Louis, Mauritius
|
|
New to Africa Capital Digest this week...
|
Director of Origination at Weiji Capital
Based in Cape Town, South Africa
|
Senior Private Equity Dealmaker at Investment Bank
Based in Johannesburg, South Africa
|
Senior Private Equity Manager at fund
Based in Johannesburg, South Africa
|
Associate for Africa practice at leading commercial law firm
Based in London, UK
|
Associate for South African Private Equity firm
Based in Johannesburg, South Africa
|
Washington, DC, January 27th to January 29th, 2016
|
African Diaspora Investment Forum
Santa Clara, California, January 29th to January 30th, 2016
|
US-Africa Business Summit 2016
Addis Ababa, February 1st to February 4th, 2016
|
Investing in African Mining Indaba
Cape Town, February 8th to February 11th, 2016
|
Egypt Energy Investment Summit
Cairo, February 16th to February 18th, 2016
|
SAVCA's Private Equity in Southern Africa
Stellenbosch, February 17th to February 18th, 2016
|
Johannesburg, February 17th to February 19th, 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
|
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
Rowayton, CT 06853, USA
|
|
|
|
Copyright © 2014-2015 Rowayton Press, LLC. All Rights Reserved.
|
|
|
|
