The
weekly roundup of Africa's Private Capital news
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Here's the latest wrap of Africa's 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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Dollar-wise, the two biggest private equity deals involving African assets last week involved exits-and they were companies that had operations in other regions in addition to their African businesses.
In the first, having sold a significant proportion of its stake in
Rocket Internet in late February this year, Swedish investment firm
Kinnevik AB sold its remaining 6.6% shareholding in the publicly-listed internet investor, earning gross proceeds of €217 million.
The transaction caps a very successful investment for Kinnevik, returning an IRR of more than 90% on its €155 million investment through a combination of dividend and divestment proceeds. Rocket Internet holds a stake in e-commerce company Africa Internet Group, the owner of several African e-commerce businesses through the Jumia platform.
The second comes courtesy of
The Abraaj Group, which led a $60 million deal in
Careem, the Dubai-based app-based car service in late 2015 and has now sold its stake to
Kingdom Holding Company. The exit forms part of an overall $150 million investment in Uber's regional rival by a group of companies that include German car maker
Daimler, venture capital firm
DCM Ventures and hedge fund
Coatue Capital.
Kingdom Holding is investing a total of $62 million for a 7% stake in the company, which it acquired through a combination of the secondary share purchase from Abraaj as well as participation in Careem's broader fund raise.
In an infrastructure deal,
African Infrastructure Investment Managers is taking a 44% equity stake on behalf of its third fund in
Albatross Energy Mali as part of a mixed debt and equity financing package totaling 125.5 million euros. The size of AIIM's stake means that the infrastructure investment specialist is now Albatross Energy's largest shareholder and the asset joins
AIIM Hydroneo and
DSM Corridor Group in Fund III's portfolio.
Hot on the heels of its investment in
KARE Distribution two week's ago,
XSML Capital is backing
Maison Galaxy, a retail chain based in Kinshasa. Terms of the deal, which is the fifteenth for the fund, were not disclosed.
Maison Galaxy, which was only founded in 2014, now operates a chain of 8 stores, located in Goma, Kitanga, Kisangani as well as Kinshasa. The firm is tapping into increasing consumer demand in the Democratic Republic of Congo for fashion, cosmetic and beauty products, and, with the latest investment, plans to open three additional stores and broaden the range of merchandise it offers.
ABO Capital, the Angolan investment firm headed by Zandre Campos, has acquired
Complexo Escolar Privado Internacional in Benfica, a suburb south of the country's capital Luanda. The move looks like it is a first step in building an educational platform for ABO Capital, which plans to open up three additional schools in the near future.
In fund raising news,
Fanisi Capital, the Kenyan private equity fund manager, has held the first close for its second fund, garnering $30 million from a group of institutional investors, which, notably, numbers eight East African pension funds among its members.
The fund, which is ultimately looking to raise a total of $75 million, will pursue a strategy similar to Fanisi's maiden fund, the $50 millions Fanisi Capital Fund I, which is now fully invested in four high-growth sectors-agribusiness, education, healthcare as well as retail and wholesale-in Kenya, Rwanda, Tanzania and Uganda.
The
African Development Bank is making a $15 million commitment to ShoreCap III,
Equator Capital's planned $150 million fund which will back small and medium-size enterprise banks, microfinance institutions, micro-insurance and financial technology companies in equity and quasi-equity deals. The fund will make investments exclusively in sub-Saharan Africa and expects to make up to 15 deals averaging $8 million in size over the course of its 10 year life.
Capital Eye, the South African private equity and venture investor, has established a new fintech platform called
Crossfin Technology Holdings to house its current and future fintech investments. Durban-based investment firm
Multiply Group is backing the new platform, acquiring 35% of the new venture, whose formal launch was announced 10 days ago. Using Capital Eye's capital as well as the investment from Multiply, Crossfin will actively look to make new acquisitions as well as make further investments in the existing businesses.
Two reports came out last week with some interesting data points. Firstly, among the findings in a report from
KPMG and the
East African Venture Capital Association, private equity firms raised a total of $1.1 billion for investments in East Africa between 2015 and 2016, a marked increase on prior years. But heading North on the continent and the story couldn't be more different. The
MENA Private Equity and Venture Capital Association's annual report has found that fundraising by funds in the region faced significant headwinds in 2016 due to economic and geopolitical factors. In their view, the outlook for 2017 is not much better.
That's it for this week.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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Kinnevik sells remaining Rocket Internet stake and earns an over 90% IRR Image Credit: Africa Internet Group
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Private Equity
AIIM takes 44% stake in €125.5mln Albatross Energy deal
African Infrastructure Investment Ma
nagers is taking a 44% equity stake on behalf of its thir
d fund in
Al
batross
Energy
Ma
li
as part of a mixed debt and equity financing package
total
ing
€
125.5 million.
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Private Equity
XSML backs Maison Galaxy in undisclosed deal
Hot on the heels of its investment in KARE Distribution two weeks ago, XSML Capital pulled out its cheque book on behalf of its $50 million Africa Rivers Fund again last week, this time backing Maison Galaxy, a retail chain based in Kinshasa. Terms of the deal, which is the fifteenth for the fund, were not disclosed.
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Private Equity
ABO Capital acquires Angolan school
ABO Capital, the Angolan investment firm headed by
Zandre
Campos, h
as acquired
Complexo
Escolar
Privado
Internacional
in Benfica, a
sub
urb
south of the
cou
ntry's
capital Luanda. Terms of the deal for the 7
6
8
-pupil
facility remain undisclosed.
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Venture Capital
Algebra Ventures backs elemnus' Series A
Egyptian venture capital firm, Algebra Ventures, is backing
Ca
iro
-based
elemnus
with $1.
5 million for the food discovery startup's Series A round. As part of the deal, Ziad
Mokhtar, Algebra's
Managin
g
Partner, is taking a seat on
elemnus
'
board.
Further
terms of the transaction were not disclosed.
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This week's issue supported by...
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Funds & Fundraising News...
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Private Equity
Fanisi holds $30mln first close for Fund II
Fa
nisi
Ca
pital
, the Kenyan private equity fund manager, has held the first close for its second fund, garnering $30 million from a group of
institutional investors, which,
notabl
y
, numbers eight
Ea
st
African
pension funds among its
members
. Between them, the domestic investors accounted for 45% of the capital committed to the close.
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Private Equity
ShoreCap III lands $15mln from AfDB
Th
e
African Development Bank is making a $15 million commitment to
ShoreC
ap
III, Equator Capital's planned $150 million fund which will back
small and medium-size enterprise banks, microfinance institutions, micro-insurance and financial technology companies in equity and quasi-equity deals.
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Projects & Portfolio Companies...
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Private Equity
Kinnevik's sale of Rocket Internet Stake earns 90%+ IRR
Having
sold a significant proportion of its stake in Rocket Internet in late February this year, Swedish investme
nt firm
Kinnevik
AB
sold its remaining 6.6% shareholding in the
public
ly
-listed internet investor, earning gross proceeds of €217 million.
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Private Equity
ARC to list non-financial assets on JSE by September
Bloomberg reports that African Rainbow Capital plans to fold its non-financial services
asset
s
into a company and list the new entity on the
Johannesbu
rg
Stock Exchange by the end of September. According to their source, the IPO
should earn ARC
R3 billion or $234 million.
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Private Equity
Abraaj sells Careem stake to Kingdom Holding
The
Abraaj
Group, which led a $60 million deal in
Ca
reem
, the Dubai-based app-based car service
in late 2015 has sold its stake to Kingdom Holding Co
mpany. D
etails of the deal's
valuation
were not disclosed.
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Private Equity
Capital Eye assets to anchor new fintech platform
Capital Eye, the
South African private equity and venture investor, has
established
a new fintech platform
called
Crossfin
Technology
Holdings to house its current and future fintech investments. Durban-based investment firm Multiply Group is b
acking
the new platform, acquiring 3
5% of the new
venture
, whose
formal
launch was
announced
10 days ago.
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Strategies
Brait
looks to Asia as UK and South Africa stumble
Brait
, the investment company, is looking to expand the operations of its gym chain, Virgin Active, in Asia, as operating conditions in its two main markets, the UK and South Africa, become more challenging as
their
economies stumble.
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Trends
East
Africa
private equity
attracts
$1.1
b
l
n
in
2015 and 2016
Among the findings in
a report from KPMG and the East African Venture Capital Association,
private
equity
firms raised a
total of
$1.1 billion for investments in
Ea
st
Africa
between
2015 and 2016, a marked increase on prior years.
And the number of deals in the
region
last year were double the number recorded in 2016.
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Trends
Fundraising in MENA sinks in 2016
The MENA P
rivate E
quity and Venture Capital Association's annual report has found that fundraising by funds in the region faced significant
headwi
nds
in 2016 due to economic and geopolitical factors. I their view,
the outlook for 2017 is
not much b
etter.
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Perspectives
Africa's startups are ripe for corporate investors
A contributed article from Augentius which looks at some of the market factors driving the need for changes in fund structures as well as some of the methods being adopted to help navigate an increasingly complex fund terrain.
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This week's featured jobs...
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Based in Johannesburg, South Africa
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Based in Pretoria, South Africa
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Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017
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Financing African Infrastructure 2017
London, June 27th to June 28th, 2017
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New this week...
Namibia Renewable Energy & Power Infrastructure Investor Conference
Windhoek, July 6th, 2017
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Dakar, July 12th to July 14th, 2017
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Sub Saharan Africa Power Summit
Cape Town, October 25th to October 27th, 2017
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Dubai, November 1st to November 2nd, 2017
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Cape Town, December 4th to December 6th, 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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