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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Both the Financial Services and the Agriculture sectors were very well-represented in the private equity deal and fund raising news coming out of Africa last week. In one case, the deal was something of a landmark for the fund, while in another, the deal concerned one of the continent's highest profile financial services platform companies.
But first, the landmark deal.
LeapFrog Investments announced its largest deal to date, spending $180 million for a stake in Ghanaian financial services company, the
Enterprise Group. The investment is also the first to be made on behalf of LeapFrog Strategic African Investments, the emerging market private equity investor's $350 million fund which has
Prudential Financial as its primary investor.
The other notable financial services deal of the week concerns
Atlas Mara, the African banking platform founded by former
Barclays' CEO Bob Diamond and entrepreneur Ashish Thakkar three years ago which now has interests in seven countries.
Fairfax Africa, an investment subsidiary of Canadian life insurer
Fairfax Financial, expects to invest a minimum of $130 million in the deal in exchange for a 35% stake in the company.
The fresh capital will be used to support Atlas Mara's growth plans, which include, in the short-term, a transaction to increase its holding in Union Bank of Nigeria.
Agriculture sector-related news last week revolved around fund raises. In the largest, we reported that
Old Mutual announced the launch of a $300 million Africa-focused agricultural private equity fund earlier in June. The new fund is targeting a net US-dollar IRR of 15% over the course of its 10-year investment period, in which it will build a portfolio of approximately 20 assets.. Its investment model revolves around the appointment of operators to lease the farms acquired by the fund who will then improve and expand the farms and build and invest in related agribusinesses and agricultural technology.
Sahel Capital announced the final close for its debut fund, the Fund for Agricultural Finance or FAFIN, last week, landing a total of $65.9 million from several development finance institutions. The fund's strategy is to back sustainable agribusinesses in the West African country and it has already invested in 4 companies. Total commitments to the fund could rise by another $10 million should an an offer by
KfW Development Bank to increase its level of commitment to the fund be approved by its board.
In other fundraising news,
TLcom Capital has held a $40 million first close for its TIDE Africa Fund, winning commitments from a combination of development finance institutions, Africa, European and American corporate investors and family offices. Two development finance institutions are responsible for 50% of the commitments made for the fund's first close - the
African Development Bank and
European Investment Bank are each investing $10 million in the 10-year fund, which is aiming to provide its investors with a net IRR of 16%. TLcom anticipates hitting the fund's target of $100 million in time for its final close in June 2018.
North of the Sahara, meanwhile,
EuroMena is acquiring a minority stake in
Retail Holdings in an undisclosed deal. The fresh capital is being earmarked to support the Moroccan retailer's expansion plans. Founded in the mid-1980's, Retail Holdings is now one of the larger retailers in Morocco, enjoying franchise relationships with a number of leading global brands. Recently, the company struck out south of the Sahara, acquiring control of
Compagnie de distribution de Cote d'Ivoire or CDCI, one of the West African country's largest food distributors.
In investment company news, Zimbabwe-focused investment and advisory company
Brainworks Ltd has announced that it has applied to list on the Main Board of the
Johannesburg Stock Exchange and is aiming to raise at least $25 million. In making the move, the company is aiming to have access to a deeper pool of more liquid capital to help push growth in its portfolio of financial services, real estate and hospitality assets.
In an article in the latest issue of
The New Yorker, we found an interesting look at some of the American startups building solar power businesses to provide off-grid customers with electricity on the continent. Last year, the nascent industry attracted over $200 million in venture capital from Europe and the United States to back entrepreneurs who see a large market opportunity and a chance to make significant profits.
And finally, in the 2016 African Investing for Impact Barometer, the
University of Cape Town's Graduate School of Business finds that more than $350 billion in capital is currently committed to impact investing in 9 countries across the continent. Perhaps unsurprisingly, South African investments represent the lion's share dedicated to impact investment strategies on the continent, professional fund managers investing in Kenya and Nigeria also increasingly aiming to achieve impact goals as part of their investment strategies.
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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LeapFrog makes biggest deal to date with $180 million Enterprise Group transaction Image Credit: Enterprise Group
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Private Equity
LeapFrog's $180mln Enterprise deal its largest to date
In backing Enterprise Group with $180 million, LeapFrog Investments is making its largest deal to date. The investment in the Ghanaian financial services provider is also the first to be made on behalf of LeapFrog Strategic African Investments, the emerging market private equity investor's $350 million fund which has Prudential Financial as its primary investor.
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Private Equity
Fairfax Africa takes a 35% stake in Atlas Mara
Fairfax Africa, an investment subsidiary of Canadian life insurer Fairfax Financial, is buying a significant stake in Atlas Mara, the African banking platform with interests in seven African countries. The deal, if approved by Atlas Mara's shareholders, will see Fairfax become the biggest single shareholder with 35% of the company and the right to nominate 4 directors to serve on Atlas Mara's board.
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Private Equity
EuroMena III takes minority stake in Moroccan retailer
EuroMena III, a Capital Trust-managed private equity fund, is acquiring a minority stake in Retail Holdings in an undisclosed deal. The fresh capital is being earmarked to support the Moroccan retailer's expansion plans.
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Angel Investment
Drive Revenue closes angel funding round
Drive Revenue, a specialist online accounting software startup targeting the legal markets, has completed its first external funding round. The capital, totaling almost R10 million or about $775,000, is being invested by angel investors based in Austria and the Netherlands. HAVAIC provided Drive Revenue with advisory services for the capital raise.
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This week's issue supported by...
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Funds & Fundraising News...
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Private Equity
Old Mutual launches $300mln African agrifund
Earlier this month, Old Mutual Investment Group announced the launch of an Africa-focused agricultural private equity fund which will make investments in African farmland (ex South Africa), agribusinesses as well as agricultural infrastructure and agricultural technology companies. Old Mutual is anchoring the fund with an initial $50 million commitment and is targeting a final close of $300 million within the next 3 years.
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Private Equity
Sahel rakes in almost $66mln for FAFIN's final close
Sahel Capital announced the final close for its debut fund, the Fund for Agricultural Finance or FAFIN, last week, landing a total of $65.9 million from several development finance institutions. Total commitments to the fund could rise by another $10 million should an an offer by KfW Development Bank to increase its level of commitment to the fund be approved by its board.
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Private Equity
TLcom Capital holds $40mln first close for TIDE Africa
TLcom Capital has held a $40 million first close for its TIDE Africa Fund, winning commitments from a combination of development finance institutions, Africa, European and American corporate investors and family offices.
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Off-grid solar
Startups solar powering Africa
In an article in the latest issue of The New Yorker, a look at some of the American startups building solar power businesses to provide off-grid customers with electricity on the continent. Last year, the nascent industry attracted over $200 million in venture capital from Europe and the United States to back entrepreneurs who see a large market opportunity and a chance to make significant profits.
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Technology
A look inside Africa's Tech sector
An interesting review of the current state of Africa's tech sector that looks beyond the hype to understand where the real opportunities and challenges lie today and in the future for one of the continent's more dynamic industry sectors.
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Trends
Annual barometer finds impact investing on the rise
The 2016 African Investing for Impact Barometer from the University of Cape Town's Graduate School of Business finds that more than $350 billion in capital is currently committed to impact investing in 9 countries across the continent. Perhaps unsurprisingly, South African investments represent the lion's share dedicated to impact investment strategies on the continent, professional fund managers investing in Kenya and Nigeria also increasingly aiming to achieve impact goals as part of their investment strategies.
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Perspectives
East Africa attracts more global private equity investors
As commodity prices languish, more and more Africa-focused global private equity firms are setting their sights on opportunities in the East African region according to this report in the
Financial Times. Several leading investors explain why.
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Perspectives
Attracting more capital for African and Indian FinTech firms
A new report from
Village Capital in partnership with the Bill & Melinda Gates Foundation looks at why fintech startups in East Africa and India find it difficult to scale and recommends a number of steps that can be taken to encourage more investors to back more companies and help them grow.
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Companies, People & Profiles...
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Company News
Brainworks applies to list on the JSE
Zimbabwe-focused investment and advisory company Brainworks Ltd has announced that it will has applied to list on the Main Board of the Johannesburg Stock Exchange. In making the move, the company is aiming to have access to a deeper pool of more liquid capital to help push growth in its portfolio of financial services, real estate and hospitality assets. Brainworks is aiming to raise a least $25 million in the initial public offering, which could take place as early as next month.
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This week's featured jobs...
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Based in Johannesburg, South Africa
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Senior Capital Markets Officer at African Development Bank
// afdb.org
Based in Abidjan, Cote d'Ivoire
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Investment Associate Principal at Open Society Foundations (6 month contract)
Based in London, UK
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Dakar, July 12th to July 14th, 2017
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Financing African Infrastructure 2017
London, June 27th to June 28th, 2017
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Namibia Renewable Energy & Power Infrastructure Investor Conference
Windhoek, July 6th, 2017
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Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017
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Sub Saharan Africa Power Summit
Cape Town, October 25th to October 27th, 2017
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New this week...
3rd Annual Urban & Infrastructure Development Conference
Kampala, October 30 to October 31st, 2017
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Dubai, November 1st to November 2nd, 2017
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New this week...
Finnovation Africa: Ethiopia 2017
Addis Ababa, November 3rd, 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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