May 15th, 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 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.  

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...             
The Week in Brief...
Hopefully, small proves to be beautiful for the Africa-focused private equity investors making deals last week. Because, the common theme of the week was deals of the smaller variety. Not that they don't have big plans. They do.

Fresh from holding a first close for its second fund in early April, Catalyst Principal Partners has completed the first investment for the fund by acquiring Jambo Biscuits from the Dawda family. The transaction is being executed via a newly-formed company, Britania Foods, whose name is derived from Jambo's flagship biscuit brand, well-known in Kenya.

As well as providing Britania Foods with an injection of working capital, Catalyst plans to support the portfolio company strategically, improving its technical capabilities, management skills, corporate governance as well as reinforcing the company's distribution network. As part of the deal, Catalyst has appointed Robert Kagundah, an experienced executive whose worked in multiple African markets managing regional FMCG businesses, including The Coca-Cola Company.

DOB Equity has become the latest institution to back Africa Logistics Properties, (ALP), a developer and manager of Grade A warehousing in Nairobi. The Dutch family office is investing $4 million in the firm for an undisclosed stake.

The fresh capital will be used to support ALP warehouse development plans as well as its expansion plans across the broader East Africa region. In early March, a consortium of investors made up of UK development finance institution CDC, the IFC, Maris Capital and Mbuyu Capital Partners jointly invested $48 million in ALP which was recently set up to take advantage of the opportunity provided by the lack of quality, international-standard warehousing space in the region.

Quona Capital, via the $141 million Accion Frontier Inclusion Fund which closed in March this year, is backing AllLife, a life insurance company providing cover for those with HIV and diabetes in South Africa. Financial terms of the deal were not disclosed.

The transaction is the tenth deal for the fund which closed with commitments totaling $141 million in March this year and marks the first foray into the insuretech space for the fintech-focused investment vehicle. The capital is being earmarked to support the company's product development plans and its expansion priorities in new countries outside South Africa.

The Moringa Partnership, an impact investor, is making its second deal in Africa, backing Asante Capital EPZ, a Kenyan agroforestry business founded in 2015, with $6 million. The size of the stake and other terms of the deal were not disclosed.

The fresh capital will help Asante scale its operations to support its expansion plans. The firm develops tree plantations and tropical crops, and an initial $3 million of the investment will be used to support the development of a plywood industry in the East African country as well as kick-start the production of essential oils and food products. 

Staying in the ealm of impact investing, two funds backed Investisseurs & Partenaires' impact fund-of-funds, IP Développement II, have recently made investments in Senegal and Burkina Faso. In backing OuiCarry, a Senegalese delivery service operator, Teranga Capital is making its first investment for its €5 million fund, whilst Sinergi Burkhina is adding a second company, AgroServ, to its €2.5 million fund's portfolio. 

In fundraising news, 500 Startups, a globally-focused venture capital firm headquartered in Silicon Valley, announced that it has held a first close for its MENA-focused fund last week. The 500 Startups MENA fund, which is also known as 500 Falcons, landed $15 million of the $30 million it is targeting for investment in early-stage startups in the MENA region.

Among the LPs making commitments to the fund's first close are the Oman Investment Fund and the Qatar Science and Technology Park. According to 500 Startups, about 50% of the fund will be invested in between 100 and 150 companies, with the balance of the fund held for follow-on investment in the top 20% of the portfolio

Meanwhile, Àrgentil Capital Management has launched the raise for its second fund, a generalist equity/debt fund that will target opportunities in small and mid-sized businesses in Nigeria. The new fund has already received commitments from three investors who participated in Àrgentil's first fund, which is now in the process of being fully realized and wound down.

Àrgentil Principal Investment Portfolio II or APIP II is initially targeting a final close $12.5 million and is hoping to deliver investors an IRR of 25%. The fund's strategy will be to allocate between $100,000 and $1 million in its deals, investing in both debt and equity instruments.

Finally, the Financial Times had a couple of interesting pieces that caught our eye last week. In the first, it reports that private companies and private equity firms are sensing promising investment opportunities in the healthcare sector on the continent as more and more of Africa's consumers can increasingly afford treatment.

And in the second, Jim Roth, one of the founders of LeapFrog Investments, explains how the decade-old emerging markets specialist investor has grown since its launch and his conviction that capitalism can have a transformative social impact.

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

Quona Capital backs AllLife in undisclosed deal
Image Credit: AllLife
Deals and Deal News...
Private Equity
Catalyst Principal Partners buys Kenya's Jambo biscuits
Nairobi-based private equity firm Catalyst Principal Partners has completed the first investment for its second fund by acquiring  Jambo  Biscuits from the  Dawda  family. The transaction is being executed via a newly-formed company,  Britania  Foods, whose name is derived from  Jambo's  flagship biscuit brand,  Britania .
Private Equity
Quona backs AllLife in undisclosed deal
Quona  Capital, via t he  $141 million  Accion  Frontier Inclusion Fund  which closed in March this year ,  is  backing  AllLife , a  life insurance company providing cover for those with HIV and diabetes in South Africa. Financial terms of the deal were not disclosed.  
Private Equity
Moringa backs  Kenyan  agroforestry business  with $6mln
The Moringa Partnership, an impact investor, is making its second deal in Africa, backing Asante Capital EPZ, a Ken yan agroforestry business  founded in 2015, with $6 million. The size of the stake and other terms of the deal were not disclosed.
Private Equity
DOB Equity backs ALP with $4mln
DOB Equity   has become the latest in vestor  to back Africa L ogis tics Properties, a developer and manager of Grade A warehousing in Nairobi.  The Dutch family office is investing $4 million in the firm for an undisclosed stake.  
Funds & Fundraising News...
Private Equity
Àrgentil Capital targets $12.5mln for second fund
Àrgentil Capital Management has launched the raise for its second fund, a generalist equity/debt fund that will target opportunities in small and mid-sized businesses in Nigeria. The new fund has already received commitments from three investors who participated in Àrgentil's first fund, which is now in the process of being fully realized and wound down.
Read more...
Venture Capital
500 Startups holds $15mln first close for MENA fund
500 Startups, a globally-focused venture capital firm headquartered in Silicon Valley, announced that it has held a first close for its MENA-focused fund last week. The 500 Startups MENA fund, which is also known as 500 Falcons, landed $15 million of the $30 million it is targeting for investment in early-stage startups in the MENA region.
Read more...
Projects & Portfolio Companies...
Impact Investments
I&P - backed funds invest in  OuiCarry  and  AgroServe
Two funds backed Investisseurs & Partenaires' impact fund-of-funds, IP Développement II, have recently made investments in Senegal and Burkina Faso. In backing OuiCarry, a Senegalese delivery service operator, Teranga Capital is making its first investment for its €5 million fund, whilst Sinergi Burkhina is adding a second company to its €2.5 million fund's portfolio.
Read more...
This week's issue supported by...             
East Africa Real Estate
Sectors & Strategies...
Healthcare
Private providers sense opportunity in Africa healthcare
As more and more of Africa's consumers can afford healthcare treatment, private companies and private equity firms are sensing promising investment opportunities in the sector. A look at some of the leading companies and their recent activities on the continent.
Power
Private Sector's role in African power is evolving
An op-ed piece in ESI Africa penned by Reda El Chaar, the Chairman of Access Power, describes the evolving role of private sector investors in Africa's power projects. 
Trends & Perspectives...
Trends
South African M&A slows in early 2017
Recent uncertainty caused by political turmoil in South Africa has exerted a downward pressure on M&A's 2017 dealflow trends in the country as investor confidence is rattled. A look at some of the trends and its impact of deal making in both the listed and unlisted space. 
Trends
South Africa private equity resilient in face of economic headwinds
Last week saw the publication of RisCura and SAVCA's regular quarterly analysis of South Africa's private equity performance report for the final quarter of 2016 which finds that asset class ended last year on a positive trajectory. A short analysis of the key themes was reported in How we made it in Africa.
Companies, People & Profiles...
Companies
Capitalism as a force for good in emerging markets
In an interview with The Financial Times, Jim Roth, one of the founders of LeapFrog Investments, explains how the decade-old emerging markets specialist investor has grown since its launch and his conviction that capitalism can have a transformative social impact.
Contributed Profile
DGGF helps Africa's private healthcare sector have access to finance
Koffi Klousseh, who previously served as Regional Lead for the World Bank's Global Infrastructure Project Development Fund, has been appointed as Director of Project Development for Africa50, the pan-African Infrastructure Investment vehicle set up by the African Development Bank.
Upcoming Investment Missions...
African Agri Council's Investor Discovery Trade Mission and Technical Tour
3 dates in 3 cities

London, May 23rd to May 25th, 2017
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.
Current Job Postings...
This week's featured jobs...             
Africa Director at I-DEV International  // idevinternational.com
Based in Nairobi, Kenya
Associate Partner, Africa at I-DEV International  // idevinternational.com
Based in Nairobi, Kenya
Vice President & CFO at the African Development Bank  // afdb.org
Based in Abidjan, Côte d'Ivoire
DM, Strategic Private Sector at the African Development Bank  // afdb.org
Based in Abidjan, Côte d'Ivoire
Senior PPP/Infrastructure Finance Specialist at The World Bank  // worldbank.org
Based in Dakar, Senegal
Senior Operations Officer at The World Bank  // worldbank.org
Based in Maputo, Mozambique
Investment Manager at Global Private Equity firm  // macdonaldandcompany.com
Based in Johannesburg, South Africa
Investment Officer, SMEs at Spartan  // spartan.co.za
Based in Johannesburg, South Africa
Investment Executive, FI & Trade Debt at CDC  // cdcgroup.com
Based in London, UK
Investment Executive, Investment Teams at CDC  // cdcgroup.com
Based in London, UK
Investment Executive at Social Impact Investor  // millarcameron.com
Based in Dakar, Senegal
Upcoming Conferences...
Highlighted Event...             
East Africa Real Estate Investor Forum 2017 
London, June 8th, 2017 
Zambia Renewable Energy & Power Infrastructure Investment Conference   // conventionventures.com
Lusaka, May 17th, 2017 
TMT Finance Africa 2017 
London, May 24th, 2017 
Morocco Renewable Energy & Power Infrastructure Investors Conference   // conventionventures.com
Rabat, May 25th, 2017 
19th Annual Africa Energy Forum 
Copenhagen, June 7th to June 9th, 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 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 
Customer Service |  thall@africacapitaldigest.com | P.O. Box 141,
Rowayton, CT 06853, USA