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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Small and midcap deals were the name of the game in Africa's private capital markets last week. There were a few of them. In terms of size,
Phatisa's deal to expand its stake in
Kanu Equipment was the largest...at just $31 million. In buying Torre Industries' 55% stake in with
Kanthu Nkama Capital, Phatisa's $246 million African Agriculture Fund will increase its stake in the company to 88.8%.
In a secondary deal,
LeapFrog Investments is spending $22 million to acquire a majority stake in
Goodlife Pharmacy, giving East Africa-focused private equity firm
Catalyst Principal Partners a full exit from the firm which it first backed in 2014. Already East Africa's largest pharmaceutical chain, Goodlife plans to use LeapFrog's investment to expand its network of stores further to number over one hundred in the next five years.
Kupanda Holdings, a joint venture between private equity firms
Kupanda Capital and
TPG Growth, is investing $2 million in a Series A round for
Copernicus, a Washington, DC-headquartered geospatial-analytics business focused on Africa.
Clients use Copernicus' platform to access data on customizable geographic areas on the continent to help improve their investment and project-related decision making processes. According to the firm's website, clients have access to data on 98% of the continent, including almost 170 distinct cities. The capital will be used to support the firm's growth as it expands its machine-learning and forecasting capabilities.
In venture capital deal news, Cape Town-based
HAVAIC has led the first round of funding for
delvv.io, a crowdsourcing startup that provides advertising agencies and brands with feedback on their marketing campaigns. The capital will be used to help the year-old company develop its business in South Africa and abroad. In its first year of operation, the company signed 25 brand clients in South Africa, North American and Asia, growing its revenues by 150% and increasing its headcount to seven.
Ethos Private Equity, one of Africa's largest fund managers, has held the first close for its Mid Market Fund I at R675 million or approximately $48 million. Ethos Capital, the fund manager's listed special vehicle which debuted on the Johannesburg Stock Exchange in August this year, is anchoring the fund with a commitment of R550 million initially, a figure which is expected to rise to R900 million by the final close.
As its name suggests, Mid Market I will look for midcap leveraged buyout opportunities in South Africa where it can deploy between R100 million and R350 million of equity in companies valued between R500 million and R1.5 billion. The fund manager will source investments in family-owned and/or entrepreneurial businesses, corporate spin-offs and optimization opportunities which have room for significant growth.
Averroès Finance III, a private equity fund-of-funds managed by
Bpifrance and co-sponsored by
Proparco held a €75 million interim close earlier this month following the addition of two new investors,
Fransabank and
Bank Audi, who committed €10 million and €5 million respectively to the Africa-focused fund. The fund will invest in generalist funds targeting high-growth SMEs and mid-cap companies on the continent.
Averroès Finance III has made three investments so far, most recently
committing €15 million to Adenia IV
which held a first close at €180 million in the last few weeks. Other commitments have been made to AfricInvest III, a mid-cap growth equity fund targeting €200 million and Metier International Capital Growth II, one of a pair of capital growth funds managed by the South Africa private equity firm which
held an interim close
in June this year.
On the legislative front, a draft Bill proposes to raise the limit on capital the UK Government can provide
CDC Group, its development finance institution, from £1.5 billion to £6 billion. The original Commonwealth Development Corporation Act of 1999 set the original £1.5 billion limit the UK Government could invest in CDC, which, after 17 years has now been reached. While the Bill raises the limit, it is not an approval or a commitment by the Government to provide CDC with the funds within any set time frame.
A look at the figures from
SAVCA's 2016 Private Equity Industry Performance Survey shows that the industry's role in closing the continent's infrastructure gap. The survey finds that about 14.5% of the R165.3 billion in assets under management in Southern Africa Private Equity in 2015 are from funds with a dedicated infrastructure mandate, a marked improvement on the 7.6% allocated from the year before. Private equity investment in infrastructure has been an emerging theme over the past decade, and it's a trend that looks set to continue.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Phatisa expands Kanu Equipment stake in deal with Torre Industries Image Credit: Kanu Equipment |
Private Equity
Phatisa's AAF takes control of Kanu in $31mln deal
Torre Industries has reached agreement to sell its 55% stake in Kanu Equipment, an agricultural and construction equipment supplier to existing shareholder Phatisa's African Agriculture Fund and Kanthu Nkama Capital in a $31 million deal.
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Private Equity
LeapFrog takes $22mln stake in Goodlife Pharmacy
LeapFrog Investments is spending $22 million to acquire a majority stake in Goodlife Pharmacy, giving East Africa-focused private equity firm Catalyst Principal Partners a full exit from the firm which it first backed in 2014.
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Private Equity
Kupanda and TPG JV backs Copernicus with $2mln
Kupanda Holdings, a joint venture between private equity firms Kupanda Capital and TPG Growth, is investing $2 million in a Series A round for Copernicus, a Washington, DC-headquartered geospatial-analytics business focused on Africa. Additional terms of the deal were not disclosed.
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Venture Capital
HAVAIC leads R6.5mln funding round for delvv.io
Cape Town-based HAVAIC has led the first round of funding for delvv.io, a crowdsourcing startup that provides advertising agencies and brands with feedback on their marketing campaigns. In tandem with private investor Kevin Gaskell, the boutique investment and advisory firm is backing delvv.io with R6.5 million or approximately $460,000.
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Venture Capital
AngelHub backs Snapplify in expansion capital round
Snapplify has received an undisclosed round of expansion funding led by AngelHub Ventures, who originally backed the e-book startup in February 2015. NuState Capital, a South African investment holding company and an un-named UK investor also participated in the round.
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Fund & Fundraising News...
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Private Equity
Bpifrance fund-of-funds holds €75mln first close
Averroès Finance III, a private equity fund-of-funds managed by Bpifrance and co-sponsored by Proparco held a €75 million interim close earlier this month following the addition of two new investors, Fransabank and Bank Audi, who committed €10 million and €5 million respectively to the Africa-focused fund.
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Private Equity
Ethos holds R675mln first close for Mid Market Fund
Ethos Private Equity, one of Africa's largest fund managers, has held the first close for its Mid Market Fund I at R675 million or approximately $48 million. Ethos Capital, the fund manager's listed special vehicle which debuted on the Johannesburg Stock Exchange in August this year, is anchoring the fund with a commitment of R550 million initially, a figure which is expected to rise to R900 million by the final close.
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This week's issue supported by...
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Policy, Regulation & Compliance...
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Legislation
Draft Bill raises CDC's funding cap
A draft bill proposes to raise the limit on capital the UK Government can provide CDC Group from £1.5 billion to £6 billion.
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Trends
Private Equity helps close Africa's infrastructure gap
A look at the figures from SAVCA's 2016 Private Equity Industry Performance Survey shows that the industry's role in closing the continent's infrastructure gap.
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Perspectives
The Africa most global Investors do not understand
A contributed article from Jean-Claude Bastos de Morais, the Founder and Chairman of Quantum Global, who looks at some of the key factors defining opportunity on the continent that international investors perhaps fail to grasp.
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Companies, People & Profiles...
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People
GFH taps Younas as Investment Management head
Bahrain-based GFH Financial Group has tapped Hammad Younas to be the bank's new Head of Investments. In his new role he'll lead asset management, private equity and corporate investment activities for the group, whose operations are focused on the GCC, North Africa and India.
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This week's issue supported by...
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New 2017 Guide to sub-Saharan Private Equity
- 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
- Expert insight on fund raising, due diligence, execution and exits
- Quick reference indexes of fund managers and portfolio companies by sector
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Based in Cape Town, South Africa or London, UK
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Analyst, Private Equity Fund-of-Funds at OBVIAM
// obviam.ch
Based in Bern, Switzerland
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Based in London, United Kingdom
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Based in London, United Kingdom
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Regional Energy Co-operation Summit
Abidjan, January 25th to January 27th, 2017
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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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Growing Economies: Project Finance Forum
Dubai, January 23rd to January 24th, 2017
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Investing in African Mining Indaba
Cape Town, February 6th to February 9th, 2017
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SAVCA Private Equity in Southern Africa
Stellenbosch, February 22nd to February 23rd, 2017
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Pensions Funds & Alternative Investments Africa
Balaclava, Mauritius, March 15th to March 17th, 2017
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Africa Financial Services Investment Conference 2017
London, May 3rd to May 5th, 2017
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19th Annual Africa Energy Forum
Copenhagen, June 7th to June 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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