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 watchers in Africa last week saw the return of a number of prominent funds to the deal market. Two, in fact, were on the opposite sides of the same deal. The third, meanwhile, backed a company with global ambitions.
In the first instance,
AfricInvest, the Tunisian headquartered, pan-African midcap private equity firm is selling its stake in
Générale Emballage in a $55 million secondary deal. The buyer is a consortium made up of fellow private equity investor
Development Partners International or DPI and German development finance institution,
DEG. They're buying a 49% stake from AfricInvest and the packaging firm's founding family in a bet that the projected increase in consumption by Algeria's growing middle class combined with the shift toward more local production across consumer industries will continue to deliver the sort of growth the firm has enjoyed during AfricInvest's involvement. According to them, since they first invested in the business in 2009, it's generated significant growth, expanding its turnover and EBITDA five and eight times respectively.
The third prominent firm to make news in Africa last week was
The Carlyle Group. They're investing an undisclosed amount through the $698 million Sub-Saharan Africa Fund and taking a majority stake in
Amrod, a supplier of promotion products and clothing to distributors in South Africa and other neighboring countries. Along with the capital, the firm's founding trio, Amit Brill, Nimov Barlev and Craig Friedman, are hoping to leverage the alternative asset manager's experience and reach to achieve the Amrod's growth ambitions.
In other deal news,
Proparco, the French development finance institution, is making a €10 million equity investment in
Activa Group, a life and non-life insurer with operations in Cameron, Ghana, Guinea, Liberia and Sierra Leone. The capital will be used to support Activa's growth plans for Central and West Africa, which in common with other sub-Saharan markets outside of South Africa, are thought to offer significant opportunities on the back of the continent's growth rates, expanding middle class and poor insurance penetration levels. As well as Activa's potential to deliver significant investment returns, Proparco's backing is also motivated by the insurance sector's ability to positively impact development over time by channeling consumer savings into long term investments in the region's companies and infrastructure projects.
In more exit news last week,
Investisseurs & Partenaires, the private equity impact investor, announced it was selling its stakes in
Duopharm, a Senegalese pharmaceutical distributor and
CDS, a Mauritanian water and energy provider to rural and other underserved communities in the country. A group of 150 pharmacies who helped launch Duopharm in 2003 is the acquirer of I&P's 24% stake, while
Engie Rassembleurs d'Energie and Monaco-based
SADEV are buying I&P's 30% stake in CDS. Additional terms of either transaction were not disclosed.
Musa Capital, the Africa-focused private equity firm officially "launched" its Namibia Mid-Cap Fund in Windhoek last week. The fund, which has already garnered some N$300 million (or almost US$22 million) in commitments from a number of investors including the country's
Government Institutions Pension Fund, is looking for an additional N$150 million (approximately US$11 million) for its final close. The fund will target growth opportunities in Namibian SMEs operating in a number of sectors including companies delivering services across the food value chain, those providing retail financial services,
healthcare and education solutions as well as light infrastructure opportunities.
Some private equity-backed portfolio companies were also doing deals last week. Having received "above R100 million" in fresh backing from private equity firm
Apis Partners two weeks ago,
Direct Pay Online Group or DPO, the largest online payments processor in East Africa, announced that it is merging with South Africa's
PayGate. The move creates a major pan-African online payment processor servicing local business owners in 24 countries from Cameroon to Mauritius. No additional details of the transaction's terms were reported. PayGate will be integrated into the Direct Pay Online Group and the company's Managing Director, Peter Harvey, will continue to lead the combined group's activities in the South Africa Common Monetary Area.
Interswitch, the digital payments and e-commerce company which is majority-owned by
Helios Investment Partners,
Adlevo Capital and the
IFC, has completed the deal to acquire Value Added Network Solutions or VANSO. The transaction, which was initiated in February, was reportedly worth N15 billion (approximately $48 million today) then, but no details on whether any price adjustments were agreed following the naira's devaluation were reported.
For the data junkies among us,
AVCA released the results of its latest biannual data tracker last week. In this snapshot of private equity activity on the continent for the first half of 2016. it appears that deal activity remains strongest in the sub $250 million deal sector, with an absence of large deals holding the overall total for deal activity in the first 6 months to $0.9 billion. On the fundraising front, the total raised hit $1.1 billion which is trending downwards compared to 2015's full year figure of $4.3 billion. However, 2016 has so far not seen the close of any funds hitting close to or over the $1 billion mark, unlike 2015.
Finally, Africa's need for significant infrastructure investment is well-documented, and investor risk perception of the continent's infrastructure projects is well-known. In a just-published paper, Amadou Sy and Rabah Arezki of
Brookings Africa Growth Initiative explore the reasons behind investor reluctance and recommend strategies on how to attract capital from long term private capital investors.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Carlyle backs promotion products supplier Amrod in latest deal for its Sub-Saharan Africa fund Image Credit: Amrod |
Private Equity
AfricInvest exits Générale Embellage in $55mln deal
AfricInvest, the pan-African midcap private equity firm, is exiting its stake in Générale Emballage in a $55 million secondary deal to a consortium made up of fellow private equity investor Development Partners International and German development finance institution, DEG.
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Private Equity
Carlyle takes majority stake in South Africa's Amrod
Private Equity giant Carlyle is investing an undisclosed amount through its Sub-Saharan Africa Fund for a majority stake in Amrod, a supplier of promotion products and clothing to distributors in South Africa and other neighboring countries.
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Private Equity
Proparco backs Activa in €10mln equity deal
Proparco, the French development finance institution, is making a €10 million equity investment in Activa Group, a life and non-life insurer with operations in Cameron, Ghana, Guinea, Liberia and Sierra Leone.
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Private Equity
I&P exits 2 portfolio companies
Investisseurs & Partenaires, the private equity impact investor, announced that is has realized two exits from its first fund, I&P Développement I. Terms for both transactions were not disclosed.
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Private Equity
Brimstone exits Afena Capital to management
Brimstone Investment Corporation, a South African investment company that makes both listed and unlisted investments, has exited its stake in Athena Capital, an independent asset manager with $249 million under management.
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Funds & Fundraising News...
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Private Equity
Musa Capital's Namibia Mid-Cap Fund launches
Musa Capital, the Africa-focused private equity firm officially "launched" its Namibia Mid-Cap Fund in Windhoek last week. The fund, which is structured as a Namfisa investment vehicle, will target growth opportunities in Namibian SMEs operating in a number of sectors.
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Projects & Portfolio Companies...
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Interswitch completes VANSO acquisition
Interswitch, the digital payments and e-commerce company which is majority-owned by Helios Investment Partners, Adlevo Capital and the IFC, has completed the deal to acquire Value Added Network Solutions or VANSO.
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Apis-backed DPO in merger deal
Having received "above R100 million" in fresh backing from private equity firm Apis Partners two weeks ago, Direct Pay Online Group or DPO, the largest online payments processor in East Africa, announced that it is merging with South Africa's PayGate.
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This week's issue supported by...
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Africa's Private Equity asset class resilient in 1H2016
Last week AVCA released the results of its latest biannual data tracker providing us with a snapshot of private equity activity on the continent for the first half of 2016.
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Enticing long term investors to Africa's infra projects
Africa's need for significant infrastructure investment is well-documented, and investor risk perception of the continent's infrastructure projects is well-known. In a just-published paper, Amadou Sy and Rabah Arezki of Brookings Africa Growth Initiative explore the reasons behind investor reluctance and recommend strategies on how to attract capital from long term private capital investors.
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Sponsored
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Companies, People & Profiles...
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People
Actis taps Byrd to join US fundraising team
Carlton Byrd, who was until recently a Managing Director for New Market Alternatives at Commonfund, has joined Actis to help grow the firm's fundraising and investor relations initiatives in the USA.
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Director, Project Finance at Africa50
Based in Casablanca, Morocco
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Based in New York, United States
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Based in New York, United States
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Dubai, October 24th to October 26th, 2016
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Abuja, October 12th to October 14th, 2016
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8th Africa PPP Conference & Showcase
London, 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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International Islamic Banking Summit Africa
Djibouti, November 2nd to November 3rd, 2016
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Africa Renewable Energy Forum
Marrakech, November 2nd to November 4th, 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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African Agri Investment Indaba
Cape Town, November 28th to November 30th, 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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Global Solutions Summit 2016
Little Rock, December 13th to December 14th, 2016
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Investing in African Mining Indaba
Cape Town, February 6th to February 9th, 2017
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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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