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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Africa Capital Alliance announced a $570 million final close for its fourth fund last week making it the largest private equity fund raise completed for African opportunities so far this year. Capital Alliance Private Equity IV (CAPE IV), which was originally targeting $600 million, secured commitments from a broad range of investors, including public and corporate pension funds, sovereign wealth funds, funds-of-funds and development finance institutions. Among those reported was
a first-time $85 million commitment from the
New York State Common Retirement Fund which was announced in May 2015. Approximately 70% of total commitments to CAPE IV were made by investors in Africa Capital Alliance's earlier funds.
In deal news, reports emerged that Africa-focused private equity fund
Development Partners International or DPI is investing $100 million in
Atlantic Business International, the financial services partnership established in 2012 between West Africa's
Atlantic Financial Group and Morocco's
Banque Centrale Populaire. The investment is being made through African Development Partners II, which at $725 million was one of the larger private equity funds to close in 2015, and will be used to buttress the group's capital as well as support the group's expansion plans throughout the West Africa Economic and Monetary Region (or UEMOA).
In South Africa, meanwhile,
Steinhoff International has concluded an agreement to acquire Tekkie Town in an undisclosed deal, giving private equity investor
Actis a full exit from its 42.5% stake in the South African shoe retailer which it acquired for $65 million in November 2014. The fact that Actis is exiting the stake somewhat earlier than the typical five to seven year holding period combined with Steinhoff's determination to secure some of the other acquisition targets this year has led to speculation that the integrated retailer offered an attractive premium to take control of the firm.
Oman's
State General Reserve Fund and Africa-focused
Summit Private Equity are among the members of a consortium investing $50 million in ASX-listed
Elemental Minerals. The third member of the consortium is a strategic investor,
Sociedad Quimica y Minera de Chile or SQM, an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals. Both SQM and the State General Reserve Fund are investing $20 million in the transaction, each acquiring approximately 133 million shares at an issue price of $0.20 to give them each a 17.4% stake in the junior mining company. Summit Private Equity is investing $10 million in exchange for 8.6% of the total issued share capital of the company.
In a strong indication that appetite for African sovereign debt is sharpening once again, Ghana raised $725 million in a Eurobond issue that was more than five times oversubscribed. According to reports, demand enabled Ghana to reduce the yield it offered on the six-year bonds to 9.25% from the 9.5% to 10% pricing being talked about earlier.
A couple of reports caught our eye on the last week. In August, the U.S. Congress was sent the first Power Africa report since the Electrify Africa Act of 2015 was passed and signed into law in February this year. The bill, which provides a crucial underpinning for the President's Power Africa initiative, establishes the framework for a Public-Private Partnership between the United States and the countries of sub-Saharan Africa to help give millions of people reliable, affordable access to electricity.
And the
Africa Private Equity and Venture Capital Association (AVCA) published the results of its annual LP survey having quizzed 67 LPs from a broad range of institutions across the world on their thoughts on the private equity opportunity in Africa. The report finds that LP's appetite is sharpening, with more LPs looking to increase their exposure to African private equity than in the prior year.
There were a number of high-profile people moves announced at high-profile investment organizations over the past 7 days.
Jürgen Rigterink is taking over as the new Chief Executive Officer of
FMO on October 1st, 2016, succeeding Nanno Kleiterp who is stepping down from leading the Dutch development bank after his second term in the role.
Finnfund has appointed Markus Pietikäinen as its new Chief Investment Officer, effective September 1st where he will be responsible for the Finnish development finance institution's investment operations and serve as a member of the company's management team and investment committee.
Stuart Bedford, who has led over $40 billion of transactions over his career, has joined
LeapFrog Investments as General Counsel from
Linklaters, where he headed the law firm's London corporate division and the private equity group.
And
Quantum Global, the Swiss-based private equity firm focused on Africa, has tapped Professor Mthuli Ncube to head its independent research business, Quantum Global Research Lab. The division provides macro-economic analysis of key development and economic issues on the continent.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Actis sells Tekkie Town stake to Steinhoff International in undisclosed deal Image Credit: Tekkie Town |
Private Equity
DPI acquires $100mln stake in ABI
Africa-focused private equity fund Development Partners International is investing $100 million in Atlantic Business International, the financial services partnership established in 2012 between West Africa's Atlantic Financial Group and Morocco's Banque Centrale Populaire.
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Private Equity
Actis exits Tekkie Town in undisclosed deal
Steinhoff International has concluded an agreement to acquire Tekkie Town in an undisclosed deal, giving private equity investor Actis a full exit from its 42.5% stake in the South African shoe retailer which it acquired for $65 million in November 2014.
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Private Equity
Oman's SGRF and Summit invest in potash miner
Oman's State General Reserve Fund and Africa-focused Summit Private Equity are among the members of a consortium investing $50 million in ASX-listed Elemental Minerals. The capital will be used to finance the development of the Kola Slyvinite Project, a major potash resource in the Republic of Congo.
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Private Equity
IFC backs bauxite miner with $200mln debt package
The IFC is backing Compagnie des Bauxites de Guinée with a $200 million debt financing package to support the expansion of the Sangaredi bauxite mine which has some of the world's largest reserves of high quality bauxite.
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This week's issue supported by...
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Funds & Financing News...
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Africa Capital Alliance's Fund IV closes at $570mln
Private equity investment fund manager Africa Capital Alliance announced the final close for its fourth fund last week, raising a total of $570 million. The new fund makes the firm the first West Africa-focused fund manager to raise over $1 billion in aggregate capital commitments.
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Mastercard Foundation backs Root Capital with $5.2mln
The Mastercard Foundation is committing $5.2 million over five years to Root Capital to invest in early-stage agricultural businesses in Côte d'Ivoire, Ghana and Senegal. Over the past seven years, the impact investor has provided the regions farmers with loans ranging between $50,000 to $2 million.
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Ghana Eurobond more than 5 times oversubscribed
In a strong indication that appetite for African sovereign debt is sharpening once again, Ghana raised $725 million in a Eurobond issue that was more than five times oversubscribed.
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Policy, Regulation & Compliance...
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US Congress receives first Power Africa report
In August, the U.S. Congress was sent the first Power Africa report since the Electrify Africa Act of 2015 was passed and signed into law in February this year.
The bill, which provides a crucial underpinning for the President's Power Africa initiative, establishes the framework for a Public-Private Partnership between the United States and the countries of sub-Saharan Africa to help give millions of people reliable, affordable access to electricity.
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AVCA's annual LP survey report published
Between December 2015 and July 2016, the Africa Private Equity and Venture Capital Association (AVCA) surveyed 67 LPs from a broad range of institutions across the world for their annual LP survey which was recently published.
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Companies, People & Profiles...
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People
Rigterink takes helm at FMO
Jürgen Rigterink is taking over as the new Chief Executive Officer of FMO on October 1st, 2016, succeeding Nanno Kleiterp who is stepping down from leading the Dutch development bank after his second term in the role.
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People
Finnfund has appointed Markus Pietikäinen as its new Chief Investment Officer, effective September 1st where he will be responsible for the Finnish development finance institution's investment operations and serve as a member of the company's management team and investment committee.
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People
Linklaters private equity lead joins LeapFrog as GC
Stuart Bedford, who has led over $40 billion of transactions over his career, has joined LeapFrog Investments as General Counsel from Linklaters, where he headed the magic circle law firm's London corporate division and the private equity group.
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People
Quantum Global taps Ncube for research arm
Quantum Global, the Swiss-based private equity firm focused on Africa, has tapped Professor Mthuli Ncube to head its independent research business, Quantum Global Research Lab. The division provides macro-economic analysis of key development and economic issues on the continent.
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Director, Project Finance at Africa50
Based in Casablanca, Morocco
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Investment Manager, Intermediated Equity, Impact Fund at CDC
Based in London, United Kingdom
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Investment Officer, Private Equity Real Estate at ACA
Based in Lagos, Nigeria
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Investment Officer, Private Equity at enterprise development firm
// linkedin.com
Based in Johannesburg, South Africa
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Based in Johannesburg, South Africa
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Private Equity Analyst at ACA
Based in Lagos, Nigeria
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Based in Cape Town, South Africa
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Based in Johannesburg, South Africa
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International Islamic Banking Summit Africa
Djibouti, November 2nd to November 3rd, 2016
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London, September 14th to September 16th, 2016
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Lagos, September 20th, 2016
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3rd Africa Alternative Investment Intensive
New York, September 19th to September 20th, 2016
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Tanzania Infrastructure & New Energy Investment
Dar es Salaam, September 21st, 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
Cape Town, October 26th to October 28th, 2016
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3rd Annual Infrastructure Project Financing Africa
Nairobi, November 7th to November 9th, 2016
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Investing in Emerging Markets Summit
Johannesburg, November 16th to November 17th, 2016
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Cape Town, November 29th to December 1st, 2016
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14th Annual African Capital Markets Conference
Cape Town, November 30th to December 1st, 2016
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The Global African Investment Summit London
London, November 30th to December 1st, 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 © 2016 Rowayton Press, LLC. All Rights Reserved.
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