African private equity deals, fundraising and exits announcements

Private equity attraction is different across African region. The level of attraction so far has been with some combinations that are not really mutually exclusive.

The drive for innovation and the enable business environment seems to be going hand in hand and good money seems to be going to where it is treated well.

Lately, the North as well as East Africa with some free way to Central part of the Continent are commanding greater chunk, both in value and sequence to tie know with the West Africa.

That is unusual. It has been a very fierce competition for fat cats wallets. And technology remains key driver.

In the West, the cluster is skew to some; and economic size is not major drivers as it were a decade ago.

What account for this is simply seamless integration of disruptive technologies products? More than ever, everywhere is a market for innovative products.

There were deals that were consolidated, and break out of funds from corporate wallets and few of these are considered in this review.

According to Private equity Africa report for June, the month closed with some laudable deals, exits and fund raising activities across Africa. Kenya, Sierra-Leone, South Africa and Nigeria were among few that cut deals, raised funds and exited markets.

DEALS

Emerging Capital Partners acquired a substantial stake in Mauritius-based Inter Africa Transport Forex (IATF).

IATF operates a financial technology platform that enables its customers – transport companies, especially cross-border ones – to better procure, manage and track their costs.

South African alternative asset manager Ethos Private Equity announced an investment of R200 million ($13.5 million) by the Ethos Artificial Intelligence (AI) Fund and co-investors in recently launched digital bank TymeBank.

The bank, which operates in South Africa, is majority-owned by African Rainbow Capital. The investment by the Ethos AI Fund in TymeBank will result in the fund being an 8% shareholder in the bank.

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Helios Investment Partners and the Egyptian-American Enterprise Fund acquired 96.7% of Misr Hytech, a breeder and producer of proprietary agricultural seeds in Egypt, and one of the Middle East and Africa’s largest independent seed companies.

Sahel Capital, fund managers for the Fund for Agricultural Finance in Nigeria (FAFIN), invested in Nigeria-based Ladgroup Limited, an indigenous agricultural company that engages in the processing and export of shea butter.

Old Mutual Private Equity, the direct private equity investing arm of Old Mutual Alternative Investments, acquired a majority interest in Footgear, a South African retailer of branded footwear. Founded in 2001, Footgear has 63 stores nationwide.

Inside Capital Partners, through its Inside Equity Fund, committed to invest an initial $3.75 million in Madagascar-based Technopet Africa Limited, to finance the expansion plan of the packaging company.

The capital injection is part of Technopet’s $10 million-plus investment plan over the next two to three years to expand its PET preforms production capacity.

A landmark merger of the African palm oil producers, Goldtree and Natural Habitats Europe Africa, has been successfully completed.

The businesses in Sierra Leone are in the process of securing full organic and Roundtable on Sustainable Palm Oil (RSPO) certification.

Prior to the transaction, Goldtree was jointly owned by African private equity fund manager Phatisa – through its African Agriculture Fund (AAF) ‒ and Finnfund, a Finnish development finance institution.

Natural Habitats Europe Africa, is a Dutch company committed to the sustainable production of organic and fairly traded products, including RSPO certified organic palm oil.

Post-merger, AAF holds 49.99%, with Finnfund and Natural Habitats Europe-Africa BV holding 22.51% and 27.5%, respectively.

FUNDRAISING

EXEO Capital closed its second food and agribusiness fund, Agri-Vie Fund II, at $146 million – showing growth of nearly 50% on the size of the first fund.

Investment fund manager Amethis announced the final close of its second Pan-African fund, Amethis Fund II, which collected €375 million from more than 70 investors in Europe and Africa, exceeding its initial target of €300 million.

The European Investment Bank approved an equity investment of $10 million in a fund managed by Gemini Capital Partners.

The fund will invest in Liberia and Sierra Leone. Gemini Fund L.P. is a closed-end venture capital fund with a target size of $50 million.

The fund will be set up to make privately-negotiated equity investments to support local SMEs in Sierra Leone and Liberia.

Pact, an international NGO, has completed an investment as a limited partner in LeapFrog Emerging Consumer Fund III – the only NGO to invest in the fund. LeapFrog Investments is a global private equity firm focused on impact investing.

Coöperatief Climate Fund Managers U.A. (CFM) has announced the final close of Climate Investor One’s Stitching Development Fund and Coöperatief Construction Equity Fund U.A. at a combined $850 million.

Climate Investor One, with an emerging markets renewable energy mandate, is the inaugural facility managed by CFM and the first of an intended series of ‘blended finance’ investment vehicles focused on providing capital to climate mitigation and adaptation sectors in developing countries.

Climate Investor One was launched in partnership between FMO and Sanlam Infra Works, part of the Sanlam Group of South Africa.

EXITS

Creative, a global long-term investment firm, made a secondary investment of $5 million in Twiga Foods, a Kenyan-based technology-enabled B2B platform to source and deliver produce directly from farmers to urban shopkeepers.

As part of this transaction, early investors, Adolf H. Lundin Charitable Foundation, Blue Haven Ventures, Crescat Limited, Omidyar Networks, Index Ventures through Project Hand Purpose Trust, and Uqalo, have partially sold their stakes to accommodate later stage and longer-term investors.

The Amethis Maghreb Fund I, managed by Amethis, sold its stake in Dislog Group, a Morocco-based consumer goods distribution company.

Kenya’s Centum Investment Company entered into agreements to sell all of its shareholding in Almasi Beverages Limited (ABL) and Nairobi Bottlers Limited (NBL) respectively to Coca-Cola Sabco East Africa Limited. Centum holds 53.9% of the issued shares of ABL and a 27.6% stake in NBL.

African private equity deals, fundraising and exits announcements

VIAJulius Alagbe
SOURCEMarketForces Africa
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