October 2nd, 2017
The  weekly roundup of Africa's Private Capital news


Here's the latest wrap of Africa's key private equity, infrastructure and venture capital deals and industry news which was reported over the past 7 days. W e'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.  

Many thanks for being a reader. If you have any tips, suggestions or questions, please reach out to Allan Cunningham at acunningham@africacapitaldigest.com
This week's issue supported by...             
Augentius Summer Survey
The Week in Brief...
Generally, it was a much quieter week over the last seven days for Africa's private capital markets compared to the prior week. But what it lacked in volume was compensated for by variety.

The biggest deal of the week was a PIPE transaction. Britam Holdings, the announced that AfricInvest was investing $55 million to acquire an approximate 14.3% stake in the  Nairobi Stock Exchange-listed insurer. The proposed transaction is structured through a special purpose vehicle set up on behalf of one of the Tinis-based private equity firm's newer funds, AfricInvest Fund III. The deal is subject to both  regulatory and shareholder approval.

Using an innovative debt structure, responsAbility Investments has struck what's described as an eight-figure debt deal with Mobisol, the provider of off-grid solar home systems. The transaction involves the establishment of a special purpose debt vehicle which will be known by the acronym MOOVE, which  will be backed by two of reponsAbility's energy funds. 

The special purpose vehicle will support Mobisol's  growth in Tanzania, improving its ability to provide financing for the electrification of over 15,000 households and small businesses. According to a company representative, the new structure is already exciting interest from a varied group of commercial and institutional investors who are keen to invest in similarly simple and secure investment vehicle structures.

Hot on the heels of its investment in FSDH Merchant Bank last week, AFIG Funds has made its second financial services sector, finalizing an agreement to back Ghana's First Atlantic Bank. The investment capital will be used to bolster the Bank's capital base, as well as help support its growth plans. The transaction is being done on behalf of AFIG Fund II, which according to the private equity firm's website, is targeting $250 million to invest in businesses that exhibit the potential to become regional "blue chips" in West, Central and East Africa. 

Musa Capital's Namibian mid-cap fund has reportedly completed its acquisition of Swanib Cables, a significant cable distributor in the South West African country. The private equity firm is acquiring the company from Powertech, a subsidiary of JSE-listed Altron, who originally acquired Swanib for R43 million in 2007. Terms of the sale to Musa Capital Namibia, which was filed with the country's Competition Commission in June, were undisclosed.

Hyperactive Milost Global was in the news again this week. This time, the New York-based private equity firm has agreed a pre-listing financing terms sheet with Primewaterview, a real estate investment and development firm in Nigeria. The eye-popping $2 billion agreement is made up of $1.3 billion in equity, with the balance in debt. The capital will be used to support Primewaterview's pipeline of development projects in Nigeria before its eventual IPO filing on the NASDAQ Stock Exchange.

In fund raising news, NBK Capital Partners announced that it held the final close for its second mezzanine fund last week. The MENA-focused alternative investment firm secured a total of $160 million for NBK Capital Partners Mezzanine Fund II, reportedly attracting strong demand from institutional investors and family offices.  The new fund will follow the same investment strategy as its predecessor, backing middle-market businesses in consumer-centric sectors in the region with mezzanine capital.
In SAVCA's latest survey of VC activity released last week, the industry association reports that 2016 saw a significant increase in capital employed in the venture capital asset class. The total jumped from R372 million in 2015 to R872 million in 2016, an increase of 134%. Te research surveyed 56 fund managers, only analyzing data on concluded deals and transactions between 2014 and 2016. In total, the period saw R3.5 billion in venture capital invested across 461 deals.

As always, you can review these and other stories by scrolling down and clicking through to them below.  

responsAbility Investments and Mobisol create 8-figure debt financing vehicle to support solar power growth
Deals and Deal News...
Private Equity
AfricInvest takes 14.3% stake in publicly-listed insurer
Africa-focused private equity firm AfricInvest is backing Britam Holdings, a publicly-listed insurance company headquartered in Nairobi..
Private Debt
responsAbility strikes 8-figure debt deal with Mobisol
responsAbility, a Zurich-headquartered development asset manager, has struck what's described as an eight-figure debt deal with Mobisol, the provider of off-grid solar home systems.
Private Equity
AFIG Funds backs Ghana's First Atlantic Bank
Advanced Finance and Investment Group, better known as AFIG Funds, has made its second financial services sector deal in two weeks..
Private Equity
Musa Capital completes Swanib acquisition
According to reports, Musa Capital's Namibian mid-cap fund has completed its acquisition of Swanib Cables.
This week's issue supported by...             
Bonds & Sukuk Nigeria
Funds & Fundraising...
Private Equity
NBK Capital holds $160mln close for second mezz fund
NBK Capital Partners announced that it has held the final close for its second MENA-focused mezzanine fund last week.
Private Equity
Milost Global signs prelisting financing term sheet
Milost Global has signed a pre-listing financing term sheet with Primewaterview Ltd, a Nigerian real estate investment and development firm..
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And carry on reading what's being read by the who's who involved in Africa's private capital deal markets.
Sectors & Strategies...
Kudos Image
ESG-readiness of Africa's unlisted companies?
KudosImpact Pulse, a groundbreaking survey assessing and analyzing the extent to which Africa's unlisted companies are adopting ESG best practices, is inviting you and your private portfolio companies to take part, in confidence. The results, to be published in December in association with Africa Capital Digest, will be eagerly anticipated. To take part in this year's survey, click here today.
Is African retail on its last legs?
In a couple of articles, Forbes Africa examines the state of bricks-and-mortar retail in Africa and asks who would invest in it.
Trends & Perspectives...
South African VC deal value jumps 134% in 2016
In SAVCA's latest venture capital survey  released last week, the industry association reports that 2016 saw a significant increase in capital employed in the venture capital asset class.
Broadening Africa's LP alternative investment exposure
While North American institutional investors allocate 29% of their assets to alternative assets and European investors  commit 24%, South African institutions struggle to commit 2% to the asset class. Moneyweb looks at why and how these institutions can expand their exposure to alternatives.
This week's issue supported by...             
Agri Indaba 2017
Companies, People & Profiles...
Dentons merges with Ugandan law firm
Continuing with its Africa expansion strategy, global law firm Dentons is gaining a foothold in the Ugandan market by combining with Kampala Associated Advocates, the country's largest law firm.
Q&A with Ethos Capital's CEO
BusinessLive talks to Peter Hayward-Butt, CEO of Ethos Capital on progress since the firm's listing on the Johannesburg Stock Exchange.
Current Job Postings...
This week's featured jobs...             
CFO & CIO at Verdant Frontiers  // verdantfrontiers.com
Based in Austin, United States
SVP, Sustainable Finance at World Wildlife Fund  // wwf.org
Based in Washington, DC, United States
Team Leader, Urban Development Program at McKinsey  // mckinsey.com
Based in Nairobi, Kenya
Investment Executive, Investment Teams at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate, Investment Teams at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate, Industrial Businesses, Equity at CDC  // cdcgroup.com
Based in London, United Kingdom
Associate, Africa Delivery Hub at McKinsey  // mckinsey.com
Opportunities in Addis Ababa, Casablanca, Lagos and Nairobi
Associate at McKinsey  // mckinsey.com
Based in Johannesburg, South Africa
Upcoming Conferences...
Highlighted Event...             
Powering Africa: Nigeria 2017 
Abuja, October 4th to October 5th, 2017 
4th Agrique Africa Investment Summit 
Frankfurt, October 24th to October 25th, 2017 
META Projects 2017
Dubai, November 1st to November 2nd, 2017 
Finnovation Africa: Ethiopia 2017 
Addis Ababa, November 3rd, 2017 
AfricaCom 2017
Cape Town, November 7th to November 9th, 2017 
International Islamic Banking Summit Africa 
Djibouti, November 8th to November 9th, 2017 
Sub Saharan Africa Power Summit
Lusaka, November 8th to November 10th, 2017 
Bonds, Loans & Sukuk Nigeria Briefing Day 2017
Lagos, November 20th, 2017 
African Agri Investment Indaba 2017
Cape Town, November 20th to November 22nd, 2017 
9th Africa Public Private Partnership Conference 
Cape Town, November 23rd to November 24th, 2017 
Gas Options North & West Africa 
Marrakech, November 29th to November 30th, 2017 
Africa Renewable Energy Forum 
Casablanca, November 30th to December 1st, 2017 
SuperReturn Africa
Cape Town, December 4th to December 6th, 2017 
And finally...
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 a free trial, for the moment,  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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