The
weekly roundup of Africa's Private Capital news
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Here's the latest wrap of key private equity, infrastructure and venture capital news which were reported over the past 7 days.
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, they're more than welcome
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Many thanks for being a reader. 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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Blame it on the time of year, perhaps, but actual deals were thin on the ground in Africa's private capital world last week. But funds and fund raising news bucked that trend and were once again at the forefront of the action.
The only private equity deal of consequence was undertaken by a portfolio company.
MédiS, a generic pharmaceuticals business with operations in Tunisia and Algeria in which
Actis acquired a stake from fellow-private equity investor AfricInvest last year, announced it is buying
Winthrop Pharma Senegal from
Sanofi in an undisclosed deal.
A proportion of the capital for the acquisition was provided by MédiS, with the balance being provided by Actis's $780 million Africa Fund 4. Winthrop Pharma Senegal enjoys a significant position in the pharmaceuticals sector in French-speaking sub-Saharan Africa, and the deal is in line with the strategy to build MédiS into a significant pan-African and Middle Eastern pharmaceuticals platform.
AfricInvest is launching its second fund specifically targeting financial sector opportunities on the continent. With the goal of raising €200 million (approximately $214.5 million), the fund will build on the track record and experience of its predecessor fund, which has backed 21 financial companies in 16 countries.
The new fund plans to be more than double the size of its predecessor, which closed in early 2014, garnering €61 million (approximately $83 million at the time) in commitments from several institutions. The fund aims to capitalize on the opportunities presented by the continent's rapidly changing financial services landscape.
Sango Capital Management has raised $145 million for its second private equity fund from a group of 26 Limited Partners. This appears to be a second close for the planned $200 million fund, following an $86.8 million close held in the in July last year. Based in Johannesburg, Sango Capital pursues a hybrid investment strategy, investing its funds' capital in Africa-focused private equity funds as well as making direct co-investments in select opportunities.
The remaining fund-related news last week was largely the preserve of the DFI sector. In terms of specific commitments, the largest came from the
European Investment Bank, which is mulling whether to invest $16 million in Maghreb Private Equity IV, a €200 million ($214.5 million) generalist closed-end fund managed by
AfricInvest. The fund makes growth capital investments in small and medium-sized businesses in Tunisia, Morocco, Algeria and Egypt.
Meanwhile, helping Catalyst Principal Partners' second fund close in on its $175 million target,
SIFEM, the Swiss Government's development finance institution is investing $8 million in Catalyst's latest generalist, East Africa-focused private equity fund. The fund held a $103 million first close at the beginning of April, landing commitments from several development finance institutions, fund-of-funds and family offices. It will pursue a similar strategy to that executed by Catalyst Fund I, making mid-market growth capital investments within fast growth consumer demand driven sectors across Eastern Africa.
Infrastructure finance was the source of the remaining fund news of the week. Once again, various DFIs were seen taking the lead. The
IFC is joining forces with
Amundi, the European asset management firm, to launch the largest green bond fund for emerging markets. With a $2 billion target, it's aimed squarely at the growing market for climate investments. The IFC will provide $325 million for the Green Cornerstone Bond Fund while Amundi will raise the balance of $1.675 billion from institutional investors as well as manage the fund. The fund's strategy will be to buy to green bonds issued by emerging market banks, including those in Africa, and it aims to be fully deployed within seven years.
In early March, the heads of the
Agence Française de Développement and the
Caisse des Dépôts, both French development finance institutions, agreed to team up and launch a €600 million infrastructure fund for emerging markets. The fund's strategy will be to source greenfield opportunities in the energy, transport, water, sanitation, health, education, telecoms and digital infrastructure projects. With leverage, it's anticipated that the fund will be able to invest up to €6 billion across all the projects it backs.
In strategy news, Indian conglomerate
Tata Group's Housing arm has set its eye on the African opportunity. It is planning to set up a $200 million investment platform with the help of private equity investors to develop projects in East Africa. The company, which has already signed term sheets for projects in Kenya and Tanzania, will develop the projects in partnership with government and local private companies.
In a piece of positive trend news,
Thomson Reuters' latest Sub-Saharan African deals analysis shows that Africa's in-bound M&A activity reached a 7-year high in the first quarter of the year, quintupling in value compared to the same period last year. Meanwhile, international acquisitions made by South African organizations accounted for 59% of the region's outbound M&A deals.
Finally, a couple of significant appointments in leading investment firms on the continent were announced last week. Firstly, Chris Newson, the former Chief Executive of
Standard Bank Africa, has joined
Investec Asset Management as Director of Private Markets. He'll work with the heads of the various private markets teams to help them continue to develop their lines of business.
And secondly,
Africa50, the infrastructure investment vehicle backed by the African Development Bank and more than 20 African countries, has appointed Carole Wamuyu Wainaina to head up the non-investment side of the business as its Chief Operating Officer. In this new multidisciplinary role, Wainaina will be responsible for the activities in the Investor Relations, Strategy, Communications, Human Resources and Environmental and Social Governance functions of the firm.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Private Equity firm AfricInvest aims to raise €200mln for their second financial sector-focused fund |
Private Equity
Actis-backed MédiS buys Sanofi's WPS
MédiS, a generic pharmaceuticals business with operations in Tunisia and Algeria, has agreed to acquire Winthrop Pharma Senegal from Sanofi in an undisclosed deal. Actis acquired what was described as "a meaningful stake" in MédiS from fellow-private equity investor AfricInvest in late August last year.
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Private Equity
AfricInvest targets €200mln for financial sector fund
AfricInvest, one of the larger Africa-focused private equity firms, is launching its second fund specifically targeting financial sector opportunities on the continent. With the goal of raising €200 million (approximately $214.5 million), the fund will build on the track record and experience of its predecessor fund, which has backed 21 financial companies in 16 countries.
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Private Equity
Sango Capital holds $145mln close for Fund II
A filing with the U.S Securities and Exchange Commission last week reveals that Sango Capital Management has raised $145 million for its second private equity fund from a group of 26 Limited Partners. This appears to be a second close for the planned $200 million fund, following an $86.8 million close held in the in July last year.
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Private Equity
EIB mulls $16mln commitment to Maghreb PE IV
The European Investment Bank is mulling whether to invest $16 million in Maghreb Private Equity IV, a €200 million ($214.5 million) generalist closed-end fund managed by AfricInvest. The fund makes growth capital investments in small and medium-sized businesses in Tunisia, Morocco, Algeria and Egypt.
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Private Equity
SIFEM backs Catalyst Fund II with $8mln
Helping Catalyst Principal Partners' second fund close in on its $175 million target, SIFEM, the Swiss Government's development finance institution is investing $8 million in the generalist, East Africa-focused private equity fund.
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This week's issue supported by...
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Infrastructure
IFC & Amundi team up for $2bln green fund
The IFC is joining forces with Amundi, the European asset management firm, to launch the largest green bond fund for emerging markets. With a $2 billion target, it's aimed squarely at the growing market for climate investments.
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Infrastructure
French DFIs to create €600mln infrafund
In early March, the heads of the Agence Française de Développement and the Caisse des Dépôts, both French development finance institutions, agreed to team up and launch a €600 million infrastructure fund for emerging markets.
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Venture Capital
Emerging fintech startups welcome in Africa
A review of factors driving the emergence of fintech startups across Sub-Saharan Africa and some of the firms that are at the centre of activity on the sector in several major capitals on the continent.
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Venture Capital
World Bank sets up investment accelerator XL Africa
Last week, the World Bank announced the launch of XL Africa, a five-month business acceleration program aimed at helping 20 of the most promising digital startups in Sub-Saharan Africa. A look at the main features of the program and instructions on how to apply.
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Strategies
Tata to back African housing with $200mln
Indian conglomerate Tata Group's Housing arm is planning to set up a $200 million investment platform with the help of private equity investors to develop projects in East Africa. The company, which has already signed term sheets for projects in Kenya and Tanzania, will develop the projects in partnership with government and local private companies.
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Trends
South Africa leads outbound M&A tables
Thomson Reuters' Sub-Saharan African deals analysis shows that in-bound M&A activity reached a 7-year high in the first quarter of the year, quintupling in value compared to the same period last year. Meanwhile, international acquisitions made by South African organizations accounted for 59% of the region's outbound M&A activity.
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Perspectives
Why smart money is backing Africa's infrastructure
The number of infrastructure projects in Africa achieving financial close has grown significantly over the last decade. A look at the major factors behind the change and how it's likely to evolve.
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This week's issue supported by...
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The essential 2017 Guide to sub-Saharan Africa's
Key Private Equity Investors
Coming soon and available at 30% prepublication discount
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Companies, People & Profiles...
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People
Newson joins Investec's private markets team
Chris Newson, the former Chief Executive of Standard Bank Africa, has joined Investec Asset Management as Director of Private Markets. He'll work with the heads of the various private markets teams to help them continue to develop their lines of business.
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People
Wainaina named as new COO of Africa50
Africa50, the infrastructure investment vehicle backed by the African Development Bank and more than 20 African countries, has appointed Carole Wamuyu Wainaina to head up the non-investment side of the business as its Chief Operating Officer.
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Upcoming Investment Missions... |
African Agri Council's Investor Discovery Trade Mission and Technical Tour
3 dates in 3 cities
London, May 23rd to May 25th, 2017
Hong Kong, June 21st to June 23rd, 2017
To request an invitation to one of these dates, please send an email to Julia Barton-Hill.
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Based in London, United Kingdom
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Based in London, United Kingdom
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Based in Johannesburg, South Africa
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Principal Policy Officers at the African Development Bank
// afdb.org
Based in Abidjan, Côte d'Ivoire
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Based in London, United Kingdom
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Investment Analyst at IFC Asset Management Company
// ifc.org
Based in Washington, DC, United States
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19th Annual Africa Energy Forum
Copenhagen, June 7th to June 9th, 2017
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Africa Financial Services Investment Conference 2017
London, May 3rd to May 5th, 2017
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4th Annual Ghana Agribusiness Investment Summit
Accra, May 4th, 2017
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African Nordic Business Conference 2017
Helsinki, May 4th, 2017
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Abuja, May 15th to May 16th, 2017
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IFC & EMPEA's Annual Global Private Equity Forum
Washington, DC, May 15th to May 17th, 2017
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East Africa Real Estate Investor Forum 2017
London, June 8th, 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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