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.
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]
|
|
This week's issue supported by...
|
Power and energy deals dominated private equity activity in Africa last week. The biggest and boldest creates a $3.3 billion platform company housing the renewable and non-renewable power assets of Africa Finance Corporation and Harith General Partners in a 50/50 JV. The, as yet unnamed,company will be one of the continent's largest electricity generators, delivering a combined gross operational and under-construction capacity of 1,575MW to 30 million people across 10 African countries.
Denham Capital, meanwhile, is committing up to $250 million of investment to GreenWish Partners, a renewable energy investment company focused on sub-Saharan Africa. The investment will be made through Denham Commodity Partners Fund VI which closed in May 2012 with $3.3 billion in commitments. The capital will be used to help the renewables platform carry out a $1 billion project pipeline to develop, build and finance a portfolio of 600MW of renewable energy assets in the region by 2020.
Lekela Power has landed an additional $117.5 million in equity funding from a group of investors led by the IFC which also includes Missouri-based Ascension Investment Management and Sanlam, the South African financial services group. The IFC, the IFC's Africa, Latin American and Carribean Fund and the IFC's Catalyst Fund all participated in the transaction, the funding from which will help Lekela continue to develop its pipeline of projects which include four wind farms in South Africa, two wind farms and a solar plant in Egypt as well as wind farms in Senegal and Ghana, which, when completed in 2018, will deliver 1.3MW of generating capacity.
In non power-related deal news, Phatisa is investing almost $15 million to acquire a 40% stake in Torre Equipment Africa (TEA), a subsidiary of JSE-listed Torre Industries, in what will be the ninth deal for the development equity investor's $246 million African Agricultural Fund. As well as providing capital, Phatisa will look to assist TEA in finding new opportunities for expansion as well as grow sales in the agricultural sector.
West Africa focused private equity fund manager
Injaro investments is investing an undisclosed amount in
Gold Coast Fruits, a Ghanaian pineapple exporter headquartered in Accra. The impact-oriented fund manager is making the investment through Injaro Agricultural Capital Holdings, a $49 million fund that targets opportunities in small and medium-sized enterprises operating across the agricultural value chain.
The fresh capital will be used for a number of strategic initiatives, including investment in new equipment and technology, bolstering Gold Coast Fruits' management team, revitalizing ageing farm infrastructure and expand the firm's markets across the Middle East and North Africa.
In fundraising news,
Capria Ventures, the impact investment firm based in Seattle, announced the launch of Capria Emerging Managers Fund, a $100 million fund-of-funds which will invest in early-stage equity and debt fund managers in Africa, Asia and Latin America.
Over the next five years, the fund will invest up to $5 million in up to fifteen of the best impact investment managers emerging from Capria's Accelerator program funds which target early-stage investment opportunities in emerging economies.
Finally, and on a smaller scale, the Dutch Good Growth Fund is mulling a $7 million commitment to Sahel Capital's Fund of Agricultural Finance in Nigeria or FAFIN. The fund, which held a $34 million close in July last year, is aiming to raise a total of $55 million to invest in equity and quasi-equity deals in growth stage SMEs in the West African country. It's expected the investment will close during the third quarter of 2016.
As always, you can review these and other stories by scrolling down and clicking through to them below.
|
 |
Phatisa buys 40% stake in Torre Equipment Africa
Image Credit: Torre Equipment Africa |
Denham Capital commits $250mln to GreenWish
Private equity firm Denham Capital is committing up to $250 million of investment to GreenWish Partners, a renewable energy investment company focused on sub-Saharan Africa. The capital will be used to help the renewables platform carry out a $1 billion project pipeline to develop, build and finance a portfolio of 600MW of renewable energy assets in the region by 2020.
|
Phatisa buys 40% of Torre Equipment Africa
In what will be the ninth deal for the $246 million African Agricultural Fund, Phatisa is investing almost $15 million to acquire a 40% stake in Torre Equipment Africa (TEA), a subsidiary of JSE-listed Torre Industries. A management consortium will acquire an additional 5% of the company, with Torre Industries retaining the balance of 55% as an ownership stake.
|
Injaro invests in Gold Coast Fruits
West Africa focused private equity fund manager Injaro investments is investing an undisclosed amount in Gold Coast Fruits, a Ghanaian pineapple exporter headquartered in Accra. The impact-oriented fund manager is making the investment through Injaro Agricultural Capital Holdings, a $49 million fund that targets opportunities in small and medium-sized enterprises operating across the agricultural value chain.
|
|
Funds and Financing News...
|
Capria launches $100mln impact fund-of-funds
Capria Ventures, the impact investment firm based in Seattle, announced the launch of Capria Emerging Managers Fund, a $100 million fund-of-funds which will invest in early-stage equity and debt fund managers in Africa, Asia and Latin America.
|
AFC lands $150mln loan facility for refinancing
Africa Finance Corporation has signed an agreement with German development bank KfW for a $150 million, 15-year loan facility. The funds will be used to refinance projects in the power, telecommunications, transport and heavy industry sectors across a number of countries. It's anticipated that AFC will draw down the loan by the fourth quarter of this year.
|
DGGF mulls $7mln commitment to FAFIN fund
The Dutch Good Growth Fund is mulling a $7 million commitment to Sahel Capital's Fund of Agricultural Finance in Nigeria or FAFIN. The fund, which held a $34 million close in July last year, is aiming to raise a total of $55 million to invest in equity and quasi-equity deals in growth stage SMEs in the West African country.
|
|
Projects & Portfolio Companies...
|
AFC and Harith merge power assets in new $3.3bn JV
In a 50/50 joint venture, Lagos-based Africa Finance Corporation and South Africa's Harith General Partners are pooling renewable and non-renewable power assets to create a $3.3 billion power entity. The new company, which is as yet unnamed, will be one of the continent's largest electricity generators, delivering a combined gross operational and under-construction capacity of 1,575MW to 30 million people across 10 African countries.
|
Lekela Power lands $117.5mln from IFC-led consortium
Lekela Power, the African renewable energy joint venture between private equity firm Actis and developer Mainstream Renewable Energy, has landed an additional $117.5 million in equity funding from a group of investors led by the IFC which also includes Missouri-based Ascension Investment Management and Sanlam, the South African financial services group.
|
Crescent Group backs Mara Group verticals
Crescent Investments, the strategic investment arm of UAE conglomerate Crescent Enterprises, is acquiring stakes in two of Mara Group's businesses-Mara Shopping and Mara Express-in an undisclosed deal. A group of unnamed private investors also took apart in the deal.
|
Convergence Partners has large appetite for more ICT deals
In an interview with Andile Ngcaba, Chairman of Convergence Partners, the specialist ICT investment firm based in South Africa,
Tech Financials gives us a profile of the firm, its strategy and a summary of some of the deals it has done to date.
|
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
|
Trends
EMPEA publishes Currency Risk survey
Last month, the Emerging Markets Private Equity Association or EMPEA published the results of its first pan-Emerging markets
Currency Risk Management Survey, looking at the impact of currency volatility on the private equity investment industry. The report aims to shed light on how GPs and LPs report and manage exchange rate movements in their emerging market portfolios, including their decisions on when, whether and how to hedge.
|
Trends
Currency dislocation stalling African private equity deals
Even though private equity investors focused on opportunities in sub-Saharan Africa have plenty of cash, low commodity prices and volatile currencies are forcing many to keep their powder dry. Bloomberg's data found that the number of private equity deals in the region for the second quarter has dropped to 29, totaling $760 million, a far cry from the 37 deals valued at $6.1 billion reported in the second quarter of 2015.
|
Investment Officer, Healthcare at LeapFrog Investments
Based in Johannesburg, South Africa
|
Private Equity Associate at Musa Capital
Based in Johannesburg, South Africa
|
Investment Officer at LeapFrog Investments
Based in Johannesburg, South Africa
|
Associate, Real Estate Private Equity at African Capital Alliance
Based in Lagos, Nigeria
|
Associate, Corporate Finance Advisory at MCB Capital Markets
Based in Port Louis, Mauritius
|
8th Africa PPP Conference & Showcase
London, October 24th to October 26th, 2016
|
SuperReturn Emerging Markets 2016
Amsterdam, June 27th to June 29th, 2016
|
EAVCA's 2nd Annual Private Equity in East Africa Conference
Nairobi, June 28th, 2016
|
Angola Infrastructure & Renewable Energy Investment
Luanda, July 12th to July 13th, 2016
|
The Global African Investment Summit Kigali
Kigali, September 5th to September 6th, 2016
|
London, September 14th to September 16th, 2016
|
Lagos, September 20th, 2016
|
Kenya International Renewable Energy Congress
Nairobi, October 3rd to October 5th, 2016
|
Dubai, October 24th to October 26th, 2016
|
Sub-Saharan Africa Power Forum 2016
Dubai, October 26th to October 28th, 2016
|
International Islamic Banking Summit Africa
Djibouti, November 2nd to November 3rd, 2016
|
Cape Town, November 29th to December 1st, 2016
|
The Global African Investment Summit London
London, November 30th to December 1st, 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 © 2016 Rowayton Press, LLC. All Rights Reserved.
|
|
|
|
