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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In terms of deals in Africa last week, it was pretty quiet. Private equity firm
Mediterrania Capital Partners made the sixth investment for its €120 million second fund by acquiring an 18% stake in
MedTech Group, a systems integration company based in Morocco. No additional terms for the deal were revealed.
The new equity will support MedTech's expansion plans further, characterized by a source as consisting of "... a very ambitious strategic plan of organic growth as well as a number of acquisitions." It's expected that the brisk pace of investments for the fund will continue, as the Mediterrania Capital is reportedly in negotiation with a number of potential investments in several African countries.
In portfolio company deal news, a couple of items caught our attention.
Liqui-Box, a liquid packaging company owned by Connecticut-based private equity firm
Olympus Partners, has struck a definitive agreement to acquire
Maverick, a Cape Town-based engineering firm which manufactures bag-in-box making equipment and designs and manufactures specialty films and laminates for the food and beverage markets. Terms of the deal were not reported. Manu Bettegowda, a Partner at Olympus Partners indicated that the deal represents the first in a series of planned acquisitions for Liqui-Box as it looks to expand.
In other portfolio company news, listed financial services group
I&M Holdings, in which British development finance institution
CDC invested late last year, announced it is acquiring Kenya's
Giro Commercial Bank in a $25 million deal. The transaction is the latest in a series of strategic acquisitions the company has made in the region's banking sector over the last eight years. Last month, I&M's shareholders voted unanimously to approve the company's acquisition of a 65% stake in
Burbidge Capital in an undisclosed deal which was first announced in October 2015.
In fund raising news,
Gulf Capital added $25 million to the pot following the IFC's decision to make a commitment to its second credit fund. Gulf Capital Credit Opportunities Fund II, which is targeting $250 million with a $300 million hard cap, held a first close at $175 million in January is year. The fund aims to 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.
The
European Investment Bank is considering making a $20 million commitment to ShoreCap III, a planned $150 million private equity fund which will target equity and quasi-equity investments in small and medium-size enterprise banks, microfinance institutions, micro-insurance and financial technology companies. The fund will be managed by
Equator Capital Partners, a Chicago-headquartered impact investor who will pursue a strategy of partnering with forward-looking management teams to invest in situations where there is a demonstrable market and social development opportunity.
In an interview with
Reuters, Jose Filomenos de Santos, the head of Angola's sovereign wealth fund explained how and why the $5 billion fund is expanding its private equity investment allocations at home and across sub-Saharan Africa as low commodity prices and currencies open up the opportunity to develop or acquire hospitality, farming and infrastructure assets cheaply.
Kenya seems to be the flavor of the month for investment or investment sector-related stories at the moment. We found a number last week, including an article on the increasing pressure on the
Law Society of Kenya to remove some the barriers to entry it imposes on foreign firms looking to set up shop in the country. In other trend news, Burbidge Capital data revealed that the volume of private equity deals in the first four months of this year handily outstripped the number announced in the same period last year. However the value of deals in 2016 is significantly lower than the same period last year, hit by a lack of larger, more expensive deals.
And finally this week, three Africa-based Directors at
Actis have been made Partners in the latest round of promotions announced by the private equity firm last week. David Cooke, Hossam Abou Moussa and Serif Elkholy take up their new roles with immediate effect. All three have been with the firm for 10 years or more and have been responsible for some of the firm's most successful investments.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Albert Alsina and Hatim Ben Ahmed of Mediterrania Capital which acquired an 18% stake in MedTech Image Credit: Mediterrania Capital Partners |
Deals and Fundraising News...
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Mediterrania takes 18% stake in MedTech
Making its sixth investment for its €120 million second fund which closed in August 2015, Mediterrania capital Partners has acquired an 18% stake in MedTech Group, a systems integration company based in Morocco. Hatim Ben Ahmed and Saâd Bendidi, both Partners at Mediterrania Capital will take seats on MedTech's board. Additional financial terms of the deal were not disclosed.
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IFC backs Gulf Capital's second debt fund
Gulf Capital announced last week that the IFC is making a $25 million commitment in a follow-on investment to the alternative investment manager's second credit and mezzanine fund. Gulf Capital Credit Opportunities Fund II, which is targeting $250 million with a $300 million hard cap, held a first close at $175 million in January is year.
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EIB mulls $20mln commitment to ShoreCap III
The European Investment Bank is considering making a $20 million commitment to ShoreCap III, a planned $150 million private equity fund which will target equity and quasi-equity investments in small and medium-size enterprise banks, microfinance institutions, micro-insurance and financial technology companies. The fund will be managed by Equator Capital Partners, a Chicago-headquartered impact investor.
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Projects & Portfolio Companies...
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I&M buys Giro Bank in $25mln cash and stock deal
I&M Holdings, the East African financial services conglomerate which counts British development finance institution CDC among its significant shareholders, is acquiring control of Kenya's Giro Commercial Bank in a $25 million cash and share deal.
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Liqui-Box buys South Africa's Maverick
Liqui-Box Holdings, an American-headquartered liquid packaging company owned by Olympus Partners, has struck a definitive agreement to acquire Maverick, a Cape Town-based engineering firm which manufactures bag-in-box making equipment and designs and manufactures specialty films and laminates for the food and beverage markets.
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Dangote takes Afreximbank equity stake
Dangote Group, the conglomerate headed by Aliko Dangote, is taking an equity stake in Afreximbank, the pan-African multilateral financial institution that supports trade between African countries and the rest of the world. The institution is owned by a broad range of governmental and private sector investors and entities.
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Angolan sovereign wealth fund expands private equity
In an interview with
Reuters, Jose Filomenos de Santos, the head of Angola's sovereign wealth fund explained how and why the $5 billion fund is expanding its private equity investment allocations at home and across sub-Saharan Africa as low commodity prices and currencies open up the opportunity to develop or acquire hospitality, farming and infrastructure assets cheaply.
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Kenyan Law Society under pressure
While several international law firms are keen to set up shop in Nairobi, the Law Society of Kenya's protectionist stance is a barrier to growth in the legal sector. The pressure to change the Society to change its membership qualifications and open the market up for more competition is being ratcheted up.
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The 2016 Guide to sub-Saharan Private Equity
Investment firms,
Investment Professionals,
Portfolio Companies
*178 Firm Profiles,1069 Investment professionals,
1025 Portfolio Companies
*Active funds, Regional and Sector Preferences
*Headquarter and Regional Office contact details
*7 Quick reference indexes of firms, fund managers, portfolio companies and sectors
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Trends
East Africa Private Equity deal volume up, value down
Newly released data released by Nairobi-based Burbidge Capital finds that the volume of private equity deals announced in the first four months of the year is up on the same period last year, but at significantly lower value. The lack of big ticket transactions in 2016 pushed down the value of deals by $600 million over the period.
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Trends
Private equity to fuel Kenya's future as a tech hub
It's no news that the poor access to finance continues to hamper Africa's ability to grow its indigenous businesses, but this piece argues that the signs are there that this is starting to change in Kenya. A summary of developments in the private equity and venture capital industry in the East African hub.
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Companies, People & Profiles...
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Actis promotes three in Africa to Partner
Three Africa-based Directors at Actis have been made Partners in the latest round of promotions announced by the private equity firm last week. David Cooke, Hossam Abou Moussa and Serif Elkholy take up their new roles with immediate effect.
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Investment Officer, Healthcare at LeapFrog Investments
Based in Johannesburg, South Africa
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Corporate Finance Partner for Africa Practice
Based in London, United Kingdom
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Portfolio Manager at the Lundin Foundation
Based in Nairobi, Kenya
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Private Equity Associate at Musa Capital
Based in Johannesburg, South Africa
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Private Equity VP, Clean Energy/Renewables deals
Based in Nairobi, Kenya
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Head of Finance, Active Management at QGIAM
Based in Port Louis, Mauritius
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Investment Officer at LeapFrog Investments
Based in Johannesburg, South Africa
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Associate, Real Estate Private Equity at African Capital Alliance
Based in Lagos, Nigeria
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M&A Associate/VP at leading Investment Bank
Based in Johannesburg, South Africa
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EAVCA's 2nd Annual Private Equity in East Africa Conference
Nairobi, June 28th, 2016
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7th Annual TMT Finance & Investment Africa
London, June 14th, 2016
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18th Annual Africa Energy Forum
London, June 21st to June 24th, 2016
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SuperReturn Emerging Markets 2016
Amsterdam, June 27th to June 29th, 2016
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The Global African Investment Summit Kigali
Kigali, September 5th to September 6th, 2016
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Lagos, September 20th, 2016
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Kenya International Renewable Energy Congress
Nairobi, October 3rd to October 5th, 2016
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8th Africa PPP Conference & Showcase
London, October 24th to October 26th, 2016
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Dubai, October 24th to October 26th, 2016
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Sub-Saharan Africa Power Forum 2016
Dubai, October 26th to October 28th, 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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