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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Private Equity
GEPF sells 24% Pareto stake to Belelani Capital
Be
lelani
Capital, a Black Economic Empowerment consortium,
has acquired a 24% stake in Pareto, one of South Africa's
largest
retail property companies, from the Government Employees Pension Fund in a deal
reported
ly
worth more that R4 billion, (approximately $253.4 million).
Th
e
deal was funded by Absa Corporate and Investment Bank and Rand
Me
rchant
Bank.
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Private Equity
OMAI's Schools Investment Fund in $24mln deal
Old Mutual Alternative
Investment's R1.2 billion
Educa
tion
and Schools Impact
investment fund and Barnstone Education have announced an additional investment in the second phase of the
Pr
estige
College
project,
lifting
the total amount of capital allocated to financing the project to R380 million or approximately $24 million. No
additional terms of the deal were disclosed.
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Private Equity
Stellar Capital sells 51.1% Tellumat stake
Stellar Capital
Pa
rtners
has sold a 51.1% stake in unlisted South
Af
rican
electronics manufacturer to Masimong Technologies, a Black Economic E
mpowerment group, in a R180 million (approximately $11.4 million) deal.
St
ellar
retains a 48.9% share in the company and reportedly has no
plans to divest itself further of the asset. Additional terms of the deal were not disclosed.
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Private Equity
Tembo Capital backs Strandline with $6.6mln
Tembo Capital the London-based private equity advisor that targets junior and mid-tier mining opportunities in Africa and other emerging countries is making a $6.6 million investment in Strandline Resources, a Perth, Western Australia-based mineral exploration and development company. As part of the deal, Tembo's John Hodder takes a seat on Strandline's board.
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Private Equity
EOS Capital makes maiden investment in Elso Holdings
Eos Capital's Allegrew Fund is making its maiden investment to take a majority stake in Elso Holdings, a Namibian manufacturer of biodegradable, toxic-free cleaning liquids and powders, tissue paper products and cleaning equipment. Additional financial terms of the deal were not disclosed.
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Private Equity
Old Mutual lifts stake in UFF African Agri
Old Mutual Investment Group is raising its overall effective equity stake in UFF African Agri Investments to 49%. The deal has evolved from the long term relationship between the two organizations which saw UFF African Agri act as fund advisor to Old Mutual through its Futuregrowth Agri and Old Mutual Agri Funds. The new partnership expects to make up to $500 million in African farmland investments over the next 3 years. Terms of the equity transaction were not disclosed.
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Sandton City Shopping Centre, one of the high-end properties in Pareto's portfolio. The GEPF sold 24% of the company to Belelani Capital in $253mln deal
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Funds & Financing News...
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Venture Capital
Niveus Investments launches growth capital fund
Niveus Investment, a subsidiary of JSE-listed Hosken
Consolidated Investments, announced the launch of Niveus Ventures, a new tech sector-focused growth capital fund looking to back
entrepreneu
rs who are aiming to expand their businesses globally. While n
e
ither
t
he amount
nor the
sources
of
capital for the fund
were
disclosed, the fund's
strategy will be to invest in firms
who
represent an investment
opportunity that lies somewhere
between
angel or
seed stage and a private equity or buyout deal.
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Projects & Portfolio Companies...
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Cleopatra Hospital Group's share sale oversubscribed
Cleopatra Hospital Group, the
Egyptian
Heal
thcare platform company
which is part of
Th
e
Abraaj Group'
s
No
rth
Africa
Hospital Holdings
,
announced
that institutional investors snapped up
its offer of 34 million shares
pr
iced
at EGP 9
, oversubscribing the issue by a multiple of almost seven
.
Th
e
Ho
spital Group is offering retail investors an additional 6 million shares, raising the total stake on offer to 25% of the company. The capital is being raised
for planned capital projects and the
acquisition
of land in Cairo to build a new hospital.
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This week's issue supported by...
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Sector - Banking
Africa's banking sector running into trouble
Africa's slowing economies are hampering the banking sector, once a
popular
investment sector on the continent,
lea
ving
a
num
ber
of countries wrestling with bank failures and a number of institutions struggling under the weight of declining
profits and depleted levels of capital. Enough dedicated i
nvestor interest remains,
however, as the continent's
stronger
banks look to snap up some of their enfeebled
breth
ren
.
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Sector - Power
Azuro-Edo IPP offers template of Africa power deals
A profile of the development, to date, of Ni
geria'
s
A
zuro
-Edo IPP power project which is due to come online in 2018 with a generating capacity of 459 Megawatts. The article ends by looking at
the
structures that are in place to mitigate risk,
including
a put-call option agreement with the country
's
Fi
nance
ministry, which is being used as template for other projects on the continent.
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Strategies
GE inks infrastructure JV with Mara and Atlas
La
st
week it was announced that General Electric,
Ma
ra
Group and Atlas Merchant Capital are joining forces to create a venture that will focus on making infrastructure equity
investments in a number of, as yet
unspecifi
ed
,
count
ries
in
Africa.
Th
e
initiative is
s
quarely
aimed at the opportunity presented by the continent's social and demographic changes
and its
highly underdeveloped
infrastructu
re
sector.
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Strategies
OPIC and REPP sign cooperation agreement
OPIC, the U.S. Government's development finance institution has signed a Memorandum of Understanding with the Renewable Energy Performance Platform or REPP to facilitate cooperation on renewable energy projects in the sub-Saharan African region.
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Strategies
IFC's strategy in backing Silicon Valley start-ups
While most of the $100 million the IFC's venture arm will invest this year will go to
oppor
tunities in developing countries, the development finance institution has invested in Silicon Valley startups in the recent past, which seems to be "off-mission" to some observers. Such moves are a
reflec
tion
of the IFC taking a broader view of its role and strategy of investing in companies that
have the g
reatest potential to impact development, even if they are located in developed markets.
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AVAILABLE NOW!
The 2016 Guide to sub-Saharan Private Equity
featuring
178 Investment firms,
1,167 Investment Professionals
and
1,029 Portfolio Companies
*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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Perspective
Partnership Capital as a solution to global development
In an article published in Institutional
Investor
's
Unconventional Wisdom column,
The Abraaj Group's
Fo
under
& CEO, Arif Naqvi explains the progress and potential of partnership capital and highlights the need to scale the approach to mobilize more development and private capital in order to achieve profound and social economic inclusion
in developing markets.
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Companies, People & Profiles...
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Quantum Global goes on hiring spree
As part of its
Africa
expansion plans, Quantum Global has hired 11 senior executives to manage the
firm's investment vehicles in
Mauritius
. In April this year,
Quantu
m
announced that it was establishing offices in a a number of key markets in
Africa
and the
Middle Ea
st to bolster investor access
to the opportunities offered by the continent.
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Portfolio Manager at the Lundin Foundation
Based in Nairobi, Kenya
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Corporate Finance Partner for Africa Practice
Based in London, United Kingdom
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Principal at CrossBoundary
Based in Johannesburg, South Africa
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Associate 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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Private Equity VP, Clean Energy/Renewables deals
Based in Nairobi, Kenya
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Senior Investment Manager, Healthcare at QGIAM
Based in Port Louis, Mauritius
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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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Investment Officer, Healthcare 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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18th Annual Africa Energy Forum
London, June 21st to June 24th, 2016
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7th Annual TMT Finance & Investment Africa
London, June 14th, 2016
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SuperReturn Emerging Markets 2016
Amsterdam, June 27th to June 29th, 2016
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EAVCA's 2nd Annual Private Equity in East Africa Conference
Nairobi, June 28th, 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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Copyright © 2014-2015 Rowayton Press, LLC. All Rights Reserved.
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