The
weekly roundup of Africa's Private Capital news
|
|
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
to sign up here.
|
|
This week's issue supported by...
|
Last week was a quiet week for private capital investment activity in Africa. And, of the deal that were done, none were on the large side. In what we estimate to the the largest deal of the week,
XSML Capital announced that it is backing
KARE Distribution for its first Ugandan deal. Terms of the deal were nor disclosed.
The deal caps a busy period for the Dutch private equity firm, which held the final close for its second fund, the Africa Rivers Fund, in the prior week. As we reported them the fund looks to back well-managed, growing small and medium businesses in the Democratic Republic of Congo, Uganda, Congo and eventually Burundi with debt, equity or mezzanine capital in deals ranging from $100,000 to $5 million in size.
Making its first distressed private equity deal for its first fund,
Africa Special Opportunities Capital or ASOC has acquired
OptiCo, a pre-school private education company for an undisclosed amount. ASOC plans to recapitalize the business and execute a robust turnaround strategy to restore it to growth, which will include potential add-on acquisitions in new markets around South Africa.
In general, the firm looks to back businesses that are experiencing organizational, financial or operational challenges, deploying up to R50 million per investment and ensuring the company provides portfolio companies help to effect a turnaround or restructure and thereby have a better prospect of saving the organization and preserving jobs.
In a venture capital deal, San Francisco-based
Zeno Ventures has backed Tizeti, the wireless broadband internet services provider based in Menlo Park, California and Lagos, Nigeria. The company, which counts the wifi.com.ng among its brand offerings, provides its clients broadband internet connectivity via solar powered WiFi towers in the Nigerian capital. It plans to roll out its operating model to other densely populated cities on the continent.
Fundraising activity was also relatively muted last week.
Inspired Evolution's second fund could be the beneficiary of a $30 million equity commitment from the European Investment Bank. Evolution II, which is aiming to hit $250 million in time for its final close at the end of this year 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. The fund held a first close in December last year, garnering commitments totaling $90 million from development finance institutions, specialized fund-of-funds and a family office.
Dutch development finance institution, the
Dutch Good Growth Fund, announced it is considering an investment of $9 million in
Zoscales Partners' first fund. The investment will be part of the fund's first close, which is expected to be between $30 million and $35 million in size.
The fund, which according to Africa Capital Digest's data is ultimately targeting $75 million at final close, will back growth capital opportunities in small and medium businesses in East Africa, primarily Ethiopia. Zoscales has a focus on four sectors--Consumer Goods, Healthcare, Materials and Energy--which it feels has the potential to deliver compounded annual growth rates in excess of 15% and will offer the most attractive exit opportunities to trade buyers as well as other private equity firms.
South African impact investment company
Secha Capital has teamed up within the last month with
Caleo Capital, a wealth and asset management firm, to launch Secha Capital VCC, a 12J investment vehicle to back established small and medium-sized businesses in the country's FMCG and agribusiness sectors.
The fund sees opportunity in what it terms the "missing middle"-- going concerns with revenues up to R50 million and between two and fifty employees--which are too big to be considered as start-ups but still insufficiently large to attract private capital. By leveraging a distinct sector focus and the managers' operational expertise, the portfolio companies will benefit from shared revenue and cost synergies and be able to push growth significantly.
The fund made its first investment in January this year, backing
nativechild, a natural haircare product with approximately R1 million of growth capital. The firm is in at the final due diligence stage with two more investments and has a robust pipeline of SMEs that fit its investment mandate.
Finally,
Waha Capital has appointed Rashid Siddiqi as a Managing Director in its private debt business. He joins the Abu Dhabi-based investment company after a nine-year career at
NBK Capital Partners where he headed up the firm's private equity and mezzanine investment business across the Middle East, North Africa and Turkey.
Waha Capital launched its private debt business a year ago under the leadership of Mirza Beg to provide middle-market companies in the Middle East, Africa and Turkey with customized debt financing and direct lending products. Beg and Siddiqi will act as Co-Heads of the firm's private debt investment activities.
As always, you can review these and other stories by scrolling down and clicking through to them below.
|
 |
ASOC makes first deal backing education firm OptiCo in undisclosed deal
|
Private Equity
XSML invests in Uganda's KARE
Fresh from holding a $50 million final close for its Africa Rivers Fund last week,
XSML Capital has announced that the fund has made its first investment in Uganda, backing KARE Distribution in an undisclosed deal.
|
Private Equity
ASOC backs distressed OptiCo for debut deal
Africa Special Opportunities Capital has made the first deal for its first fund, acquiring OptiCo, a distressed education company targeting operating private pre-schools and providing early childhood care in South Africa's Gauteng region. Terms of the deal were undisclosed.
|
Venture Capital
Zeno Ventures backs Tizeti in undisclosed deal
Zeno Ventures, the San Francisco-based venture capital firm established in 2016, has backed Tizeti, the wireless broadband internet services provider based in Menlo Park, California and Lagos, Nigeria. Terms of the deal were not disclosed.
|
|
Funds & Fundraising News...
|
Private Equity
EIB considers $30mln backing of Inspired Evolution II
Inspired Evolution's second fund could be the beneficiary of a $30 million equity commitment from the European Investment Bank. Evolution II, which is aiming to hit $250 million in time for its final close at the end of this year, held a first close in December last year, garnering commitments totaling $90 million from development finance institutions, specialized fund-of-funds and a family office.
|
Private Equity
DGGF mulls $9mln backing for Zoscales Fund I
Dutch development finance institution, the Dutch Good Growth Fund, announced it is considering an investment of $9 million in Zoscales Partners's first fund. The investment will be part of the fund's first close, which is expected to be between $30 million and $35 million in size.
|
Venture Capital
Secha Capital launches 12J vehicle
South African impact investment company Secha Capital has teamed up within the last month with Caleo Capital, a wealth and asset management firm, to launch Secha Capital VCC, a 12J investment vehicle to back small and medium-sized businesses in the country's FMCG and agribusiness sectors.
In addition to capital, the fund's strategy is to build value in its investee companies with significant operational support.
|
|
This week's issue supported by...
|
Perspectives
Tech incubators can help close Africa's governance gap
Obinwanne Okeke, the Chairman and CEO of Invictus Group, looks at the ways Africa's Tech Incubators can help push economic growth and promote greater transparency, creating a virtuous circle to attract more investment on the continent.
|
Perspectives
Fee structures need to adapt to meet shifting LP needs
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.
|
|
Companies, People & Profiles...
|
People
Waha Capital taps Siddiqi for private debt business
Waha Capital has appointed Rashid Siddiqi as a Managing Director in its private debt business. He joins the Abu Dhabi-based investment company after a nine-year career at NBK Capital Partners where he headed up the firm's private equity and mezzanine investment business across the Middle East, North Africa and Turkey.
|
| Upcoming Investment Missions... |
African Agri Council's Investor Discovery Trade Mission and Technical Tour
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.
|
|
This week's featured jobs...
|
Based in Johannesburg, South Africa
|
Based in Johannesburg, South Africa
|
Dakar, July 12th to July 14th, 2017
|
19th Annual Africa Energy Forum
Copenhagen, June 7th to June 9th, 2017
|
East Africa Real Estate Investor Forum 2017
London, June 8th, 2017
|
3rd Annual Private Equity in East Africa Conference
Nairobi, June 15th, 2017
|
New this week...
Financing African Infrastructure 2017
London, June 27th to June 28th, 2017
|
Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017
|
Sub Saharan Africa Power Summit
Cape Town, October 25th to October 27th, 2017
|
Dubai, November 1st to November 2nd, 2017
|
Cape Town, December 4th to December 6th, 2017
|
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
|
|
Africa Capital Digest is a product of Rowayton Press
Rowayton, CT 06853, USA
|
|
|
|
Copyright © 2016 Rowayton Press, LLC. All Rights Reserved.
|
|
|
|
