January 30th, 2017
The  weekly roundup of Africa's Private Capital news


  

Here's this week's wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces.  Thank you being a reader and we look forward to continuing to keep you informed on the private capital investment themes, deals and fund raises in Africa.

As always, we'd be delighted if you shared it with any interested colleagues and/or business partners.  If they would like to receive their own weekly copy in 2017, they're more than welcome to sign up here. 

Finally, if you have any tips, suggestions or questions, please reach out to Allan Cunningham at acunningham@africacapitaldigest.com
This week's issue supported by...             
The Week in Brief...
Actual deals were hard to come buy in Africa's private capital world last week. The main news centered around fund raisings, with a couple of notable announcements.

The biggest of the week was a debt issuance - to be precise a Sukuk issuance. Africa Finance Corporation, the multilateral finance institution,issued its maiden Sukuk, raising $150 million, handily beating its initial target of $100 million. The highest-rated ever Sukuk issuance from an Africa institution attracted approximately $230 million in orders in a sign of strong investor interest. The Murabaha Sukuk, has a three-year tenor and will mature on January 24th, 2020. Moody's has awarded the privately placed issuance an A3 senior unsecured rating. 

On the equity front, Inspired Evolution announced that it held a first close for its second fund in late December, garnering commitments totaling $90 million from development finance institutions, specialized fund-of-funds and a family office.

Evolution II, which is aiming to hit $250 million in time for its final close at the end of this year, is a 10-year closed-end fund which will make equity and equity-related investments to take significant minority or equity-control stakes in clean and sustainable development and project finance infrastructure opportunities and growth equity investments in energy and resource efficiency businesses and their supporting value chains. 

Pearl Capital Partners, the Kampala headquartered private equity firm which specializes in agriculture investments, has held a €12 million first close for Yield Uganda Investment Fund, a new Agro equity impact fund being supported by the European Union, the International Fund for Agricultural Development and Uganda's National Social Security Fund.

The fund aims to hold a second close by the end of the year, raising an additional €13 million to bring the fund's total commitments to €25 million. Pearl Capital Partners is coordinating the raise with Deloitte Uganda, and will target both private and public investors for the fund which will provide Uganda's small and medium-sized enterprises with access to capital.

In private capital deal news, Kleoss Capital-backed Real Foods has been given the green light by South Africa's Competition Commission to acquire Highveld Honey, one of the country's largest honey producers. The undisclosed deal is the latest acquisition for the multi-brand food group which was first backed in 2014 by Genesis Capital Partners and, most recently, in August 2016, when it sold Kleoss Capital a "significant minority stake" to help the company execute its acquisition strategy in the natural food industry. 

The deal was done via Kleoss Capital Find 1, a R1.2 billion generalist fund which typically looks to invest between R50 million and R150 million in established companies. 

There were a couple of interesting perspective pieces in other publications last week. Reuters reports that Africa's sovereign investment funds are offering infrastructure co-investment opportunities and guarantees to foreign investors in a bid to help close the continent's yawning infrastructure gap.

Aubrey Hruby writes about the developmental difference private equity can make in Africa. In the Financial Times, she outlines how the Africa-focused private equity community is playing a unique role in the development of the continent, enjoying a symbiotic relationship that turns economic growth into positive investment returns and boosting healthy economic development and the accompanying job creation and political stability it provides.

And finally, a company profile. Last September, London-based Atlas Merchant Capital launched its subsidiary AMC Trade Finance to tap into the opportunity that's offered by Africa's Trade Finance gap. With 32 transactions settled of closed since then and a deal pipeline in excess of $50 million, much is promising to the firm which opens the doors of its South African office this week.

As always, you can review these and other stories by scrolling down and clicking through to them below.  

Private Equity backed Real Foods gets green light to acquire Highveld Honey
Image Credit: Highveld Honey
Deals, Fund & Fundraising News...
Private Equity
Real Foods wins approval for Highveld Honey Acquisition
Private Equity backed-Real Foods has been given the green light by South Africa's Competition Commission to acquire Highveld Honey, one of the country's largest honey producers.  The acquisition was approved, without conditions, with the Commission concluding that the deal "...is unlikely to substantially prevent or lessen competition."  
Private Equity
Inspired Evolution holds $90mln first close for Fund II
Inspired Evolution, the specialist investment business that focuses on investments in sustainable clean energy and resource efficiency investments across sub-Saharan Africa announced it held a first close for its second fund in late December, garnering commitments totaling $90 million from development finance institutions, specialized fund-of-funds and a family office.
Private Equity
Pearl Capital Partners holds €12mln close for impact fund
Solar lighting and power products company d.light has raised $10.5 million in equity and grants from Norfund, Beyond the Grid and the Shell Foundation. The latest funding brings the total amount raised by the off-grid solar company in the last four months to more than $40 million.
Debt
AFC issues $150mln maiden sukuk
Africa Finance Corporation has issued it maiden Sukuk, raising $150 million and handily beating its initial target of $100 million. The highest-rated ever Sukuk issuance from an Africa institution attracted approximately $230 million in orders in a sign of strong investor interest.
This week's issue supported by...             
PIA 2017
Regulation, Policy & Compliance...
Venture Capital
South Africa's Treasury changes VC tax regime
South Africa's Treasury has announced a change to the country's venture capital tax regime which should ease the ability of venture capital companies to find initial investors for their funds.
Sectors & Strategy...
Real Estate
Commercial Real Estate to look to alternatives for debt
Commercial Real Estate debt raisers in Africa will increasingly look to alternative senior debt, mezzanine and debt equity funds as sources of finance in 2017. The trend shift can be put down to a few actors including ratings agencies' investment analysts' and investors requirements have led to banks reducing the size and leverage on loans on offer. 
Trends & Perspectives...
Trends
Africa's SWFs look for foreign investors to help plug infra gap
Africa's sovereign investment funds are offering infrastructure co-investment opportunities and guarantees to foreign investors in a bid to help close the continent's yawning infrastructure gap.  A look at some of the initiatives and despite promising return potential, the challenges the sovereign wealth funds have in attracting the much-needed capital.
Perspectives
Private Equity's developmental difference in Africa
While still maturing, the Africa-focused private equity community is playing a unique role in the development of the continent, enjoying a symbiotic relationship that turns economic growth into positive investment returns and boosting healthy economic development and the accompanying job creation and political stability it provides.
Trends & Perspectives...
Company Profile
Africa Merchant Capital taps Trade Finance opportunity 
While the lack of trade finance available in Africa since the 2008 financial crisis is currently hampering growth in several economies, some feel the time is ripe for independent financial firms to help plug the trade finance gap. One such firm hoping to cash in on the opportunity is London-based Africa Merchant Capital which launched its subsidiary AMC Trade Finance in September last year.
Current Job Postings...
Highlighted Job..

Boost your 2017 recruitment efforts by advertising your vacancies in this highlighted position. Quality applicants guaranteed! Email Teresa Hall today to find out about rates and availability.
Senior Investment Officer at BIO  // bio-invest.be
Based in Brussels, Belgium
Private Equity Investment Principal for Asset Manager  // caglobal.com
Based in Lagos, Nigeria
Associate at Africa-focused Private Equity firm  // efinancialcareers.com
Based in Paris, France
VP, Fund Administration at Maples Fund Services  // efinancialcareers.com
Based in Dubai, United Arab Emirates
New to AfCD this week...
Investment Associate for Private Equity firm  // accaglobal.com
Based in Nairobi, Kenya
Africa M&A/Project Counsel for Global Law Firm  // laurencesimons.com
Based in Paris, France
Upcoming Conferences...
Highlighted Event...             
Africa Financial Services Investment Conference 2017 
London, May 3rd to May 5th, 2017 
Growing Economies: Project Finance Forum 
Cape Town, February 2nd to February 3rd, 2017 
Investing in African Mining Indaba 
Cape Town, February 6th to February 9th, 2017 
Africa Finance & Investment Forum 
Nairobi, February 13th to February 16th, 2017 
SAVCA Private Equity in Southern Africa 
Stellenbosch, February 22nd to February 23rd, 2017 
Powering Africa: Summit 
Washington, DC, March 9th to March 10th, 2017 
Pensions Funds & Alternative Investments Africa 
Balaclava, Mauritius, March 15th to March 17th, 2017 
Bonds, Loans & Sukuk Africa 
Cape Town, April 5th to April 6th, 2017 
AFC Live 2017 
Abuja, May 15th to May 16th, 2017 
19th Annual Africa Energy Forum 
Copenhagen, June 7th to June 9th, 2017 
And finally...
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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