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.
Thank you for 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 was another quiet-ish week on the private capital investment from in Africa last week. In terms of deals done,
Vantage Capital made its third investment from Fund III, which is currently in fundraising mode and aiming for a $260 million final close. The transaction was with United Africa Group, a property and hospitality group in Namibia, which Vantage agreed a debenture facility of approximately $5.6 million to support the company' share of the development of a new Hilton Garden Inn in Windhoek.
Moving north on the continent,
Catalyst Principal Partners, the private equity firm which targets opportunities in East Africa, announced an investment in
Orbit Chemical Industries last week. While terms of the deal were not disclosed, Catalyst's typically invests between $5 million to $20 million in its transactions. The Orbit deal marks Catalyst's fourth transaction in the manufacturing and consumer product sectors, following earlier investments in Tanzania's
Chemi & Cotex Industries, Chai Bora and Ethiopia's
Yes Brands. The investment is the third for Catalyst in Kenya, with the private equity firm having previously invested in
Goodlife, a pharmaceutical retailer and most recently,
Jamii Bora Bank, an SME lender.
Meanwhile,
8 Miles, announced it is taking a significant minority stake in Verde Beef Processing, an Ethiopian agribusiness. The capital will be used to finance the firm's expansion plans, multiplying its current base of 6,000 animals ten-fold and constructing an abattoir and meat processing facility. Demand for premium beef in the Middle East, Africa and Asia continues to rise, offering Verde Beef Processing the opportunity to grow overseas markets for its products and services.
The
IFC is considering a number of potential investments at the moment. The biggest is an investment of $40 million in the Senior Unsecured Note of African Local Currency Bond Fund, an investment vehicle sponsored by German development bank
KfW, which will be managed by LHGP Asset Management, an affiliate of
Lions Head Global Partners, a London-based merchant banking firm. The fund's goal is to support the development of African capital markets by improving and diversifying access to long-term funding in local currencies, anchoring first-time or innovative bond issuances by local entities.
Not far behind in terms of size, the IFC is also mulling an investment of up to $30 million in a mix of senior debt and quasi equity/equity in
Hassan Allam Construction, a private, Egyptian construction group that is looking to diversify its activities by developing and taking partial ownership in a select number of the country's long-term infrastructure projects.
Finally, a couple of interesting trend pieces were published within the last week.
EY and the
African Private Equity and Venture Capital Association released their fourth annual analysis of the private equity industry on the continent, reporting that private equity asset sales reached a nine-year high in 2015 as funds raised between 2006 and 2008 came to the end of their lives. And EMPEA published the latest Global Limited Partners survey last week which finds that some 40% of LPs anticipate increasing the dollar value of new commitments to emerging market private equity funds over the next two years compared with 46% in the 2015 survey. Southeast Asia ranks as the most attractive emerging market for GP investment over the next 12 months, while Sub-Saharan Africa comes in third.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
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8 Miles takes significant minority stake in Ethiopia's Verde Beef Processing Image Credit: Verde Beef Processing |
Private Equity
Vantage Capital backs UAG in first Namibian Deal
Marking its first investment in Namibia, mezzanine fund manager Vantage Capital announced last week that it is providing United Africa Group, a property and hospitality group, with a N$80 million (approximately US$5.6 million) debenture facility to support the company' share of the development of a new Hilton Garden Inn in Windhoek. Additional terms of the deal were not disclosed.
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Private Equity
Catalyst Principal backs Orbit Chemicals
Catalyst Principal Partners, the private equity firm which targets opportunities in East Africa, announced an undisclosed investment in Orbit Chemical Industries last week. The capital will be used to expand Orbit's current and planned product lines as well as establish additional manufacturing capacity across the region.
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Private Equity
8 Miles takes significant minority stake in Verde Beef
8 Miles, an Africa-focused private equity fund, announced it is taking a significant minority stake in Verde Beef Processing, an Ethiopian agribusiness. Terms of the deal were not disclosed. The capital will be used to finance the firm's expansion plans, multiplying its current base of 6,000 animals ten-fold and constructing an abattoir and meat processing facility.
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DFI
IFC mulls $30mln deal in Egyptian construction firm
The IFC, the World Bank's development finance institution, is considering an investment of up to $30 million in a mix of senior debt and quasi equity/equity in Hassan Allam Construction, a private, Egyptian construction group that is looking to diversify its activities by developing and taking partial ownership in a select number of the country's long-term infrastructure projects.
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DFI
IFC considers $7.5mln investment in Zoona's Series B
The IFC's board of directors is meeting at the end of May to review a $7.5 million equity commitment by the development finance institution in Zoona, a company that operates an agent network of over-the-counter money transfers in Zambia and Malawi. If approved, the investment would be part of Zoona's $15 million Series B fundraising round. The capital will be used to expand the firm's agent network in current and regional markets.
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This week's issue supported by...
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Funds & Financing News...
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Private Equity
Atlas Mara and Carlyle in rumored link to bid for Barclays
The
Financial Times reports that Atlas Mara is joining forces with private equity giant Carlyle to prepare a bid for Barclay's Africa assets. No formal approach has been made to Barclays yet, the news organization reports, and bid preparations are at an early stage.
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DFI
IFC's $40mln commitment to Lions Head-managed fund
The IFC is mulling an investment of $40 million in the Senior Unsecured Note of African Local Currency Bond Fund, an investment vehicle sponsored by German development bank KfW, which will be managed by LHGP Asset Management, an affiliate of Lions Head Global Partners, a London-based merchant banking firm.
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Policy, Regulation & Compliance...
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Competition Law tightens up across Africa
Competition law regimes are now established throughout Africa and are becoming increasingly active and interventionist in regulating what is considered anti-competitive conduct on the continent. A brief review by Derek Lotter, Head of Competition in Bowman Gilfillan's Africa group, of developments in some countries.
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Trends
LPs looking to expand emerging market allocations
EMPEA's latest
Global Limited Partners survey which was published last week finds that some 40% of LPs anticipate increasing the dollar value of new commitments to emerging market private equity funds over the next two years compared with 46% in the 2015 survey. Southeast Asia ranks as the most attractive emerging market for GP investment over the next 12 months, while Sub-Saharan Africa comes in third.
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Trends
Private Equity exits in Africa hit 9-year high
EY and the African Venture Capital Association released their fourth annual analysis of the private equity industry on the continent, reporting that private equity asset sales reached a nine-year high in 2015 as funds raised between 2006 and 2008 came to the end of their lives.
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JUST PUBLISHED!
Africa Capital Digest's
2016 Guide to sub-Saharan Private Equity
*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
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Companies, People & Profiles...
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Profile
Fajr, a private equity shop built on Islamic principles
An interesting profile in
Institutional Investor of Fajr Capital, a $700 million fund set up in 2009 by a trio of sovereign wealth funds and a family office that has now fully deployed its capital in banking, infrastructure, education, food and manufacturing deals.
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Principal at CrossBoundary
Based in Abuja, Nigeria
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Regional Investment Director at leading DFI
Based in Ogun, Nigeria
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Investment Associate at CrossBoundary
Based in Bamako, Mali
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Investment Associate at Enko Capital
Based in Johannesburg, South Africa
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Investment Analyst at Enko Capital
Based in Johannesburg, South Africa
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Investment Executive, Project Finance at CDC
Based in London, United Kingdom
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Investment Analyst at Kappafrik Group
Based in Lagos, Nigeria
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Principal at CrossBoundary
Based in Johannesburg, South Africa
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Private Equity Associate at Musa Capital
Based in Johannesburg, South Africa
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Associate at CrossBoundary
Based in Johannesburg, South Africa
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18th Annual Africa Energy Forum
London, June 21st to June 24th, 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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Global Private Equity Conference
Washington, DC, May 9th to May 12th, 2016
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Sub-Saharan Islamic Finance Convention
Kampala, May 10th to May 11th, 2016
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The Global African Investment Summit Kigali
Kigali, September 5th to September 6th, 2016
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Kenya International Renewable Energy Congress
Nairobi, October 3rd to October 5th, 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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Copyright © 2014-2015 Rowayton Press, LLC. All Rights Reserved.
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