July 31st, 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...             
Power Nigeria
The Week in Brief...
By acquiring Fertilizer and Inputs Holding from Louis Dreyfus Company last week, Helios Investment Partners is making one of Africa's bigger private equity deals of the year. According to The Financial Times, people familiar with the deal value the transaction at being around $200 million, split equally between debt and equity. Helios plans to provide the firm, which posts about $300 million in revenues annually, with expansion capital to help accelerate the growth of the business and build "other country multi-distribution platforms" in the agricultural sector on the continent.

Having a acquired a stake in Interswitch earlier this year, TA Associates, the Boston-headquartered private equity firm is making its second deal of the year with African connections. The firm's making what's being described as a significant strategic growth investment and backing Inspired, a global education business. Terms aren't being disclosed. 

Inspired, which has an office in Johannesburg, operates the Reddam House and Reddford House groups in South Africa and Brookhouse School in Kenya. The firm has grown rapidly through a mix of acquisitions and new school development since its founding on 2013 and now operates 27 schools and 5 early learning establishments in Europe, Australia, Latin America as well as Africa.

In a smaller education deal, Verod Capital has agreed to acquire a significant minority stake in Greensprings Educational Services, a 32-­year old educational service provider offering pre-­primary, elementary, secondary and post-­secondary schooling for both day and boarding students in Nigeria. The transaction is being made through Oreon Education, Verod's education investment vehicle backed by the private equity firm's sophomore fund, the $115 million Verod Capital Growth Fund II. The fresh capital will be used by Greensprings to restructure its capital base as well as fund planned growth initiatives.

Infinitus Holdings, a mid market-focused private equity investment company, has acquired Promeal, South Africa's second largest wet pet food manufacturer from Overberg Agri, an agricultural company based in the Western Cape. Again, terms of the deal remain undisclosed. Continuing Promeal's growth remains a key priority for the firm, which will be achieved through the expansion of current brands and the its contract manufacturing division as well as investment in new product development.

In a brief statement last week, Convergence Partners announced that it has sold its stake in Dimension Data Middle East & Africa, fully exiting its investment in the firm. The IT infrastructure and solutions provider was housed in the portfolio of the private equity firm's first fund, the R1 billion Convergence Partners Fund I. As a result of the sale, Andile Ngcaba, Convergence's founding partner, is stepping down as Executive Chairman of DiData as well as from the various group-related Boards on which he served.

Marking its second deal in Uganda, XSML Capital is backing Qualicoff, an exporter of coffee beans, in an undisclosed, long-term working capital debt financing deal. The transaction is being made through XSML's African Rivers Fund which closed with $50 million in commitments earlier this year.

Jack Ma, the founder and chairman of Chinese e-commerce giant Alibaba, announced the creation of the African Young Entrepreneurs Fund at a conference in Kigali last week. He is reportedly poised to hire staff for the planned $10 million fund, which will begin operations this year. As well as capital, Ma plans to bring 200 African business people to China to learn from Alibaba's success, hopefully leaving with practical business building skills learned from the firm's executives and operations.

And finally, according to Baker McKenzie's latest cross-border M& index, the political uncertainty roiling South Africa has had an adverse effect on inbound M&A volumes to the whole continent.  The data, which covers the second quarter of this year reveals that there were 17 inbound deals for the period, a decline of 48% on the volume reported in the same period last year as well as a 45% drop from the 31 inbound deals reported in the first quarter of this year.

That's it for this week.  As always, you can review these and other stories by scrolling down and clicking through to them below.  

Helios Investment Partners buys Louis Dreyfus's African fertilizer unit for a reported $200 million
Deals and Deal News...
Private Equity
Helios buys Louis Dreyfus fertilizer business
Helios Investment Partners has acquired Fertilizer and Inputs Holding from Louis Dreyfus Company, one of the world's largest commodity traders. According to The Financial Times, people familiar with the deal value the transaction at being around $200 million, split equally between debt and equity.
Private Equity
TA Associates invests in schools group Inspired
In backing Inspired, a global education business, Boston-headquartered private equity firm TA Associates is making its second deal this year with African connections. The company, which has an office in Johannesburg, operates the Reddam House and Reddford House groups in South Africa and Brookhouse School in Kenya.
Private Equity
Infinitus acquires pet food manufacturer Promeal
Infinitus Holdings, a mid market-focused private equity investment holding company, has acquired Promeal, South Africa's second largest wet pet food manufacturer from Overberg Agri.
Private Equity
Convergence exits Dimension Data in undisclosed deal
In a brief statement last week, Convergence Partners announced that it has sold its stake in Dimension Data Middle East & Africa, fully exiting its investment in the firm.
Private Equity
Verod Capital takes minority stake in Greensprings
Verod Capital Management has agreed to acquire a significant minority stake in Greensprings Educational Services, a 32-­year old educational service provider offering pre-­primary, elementary, secondary and post-­secondary schooling for both day and boarding students in Nigeria.
Private Equity
XSML backs Qualicoff in debt financing deal
Marking its second deal in Uganda, XSML Capital is backing Qualicoff, an exporter of coffee beans, in an undisclosed, long-term working capital debt financing deal. The transaction is being made through the African Rivers Fund, which closed with $50 million in commitments earlier this year.
Funds & Fundraising News...
Venture Capital
Alibaba's Jack Ma announces $10mln entrepreneur fund
During the Youth Connekt Africa Summit hosted by UNCTAD and the Government of Rwanda in Kigali last week, Jack Ma, the founder and chairman of Chinese e-commerce giant Alibaba, announced the creation of the African Young Entrepreneurs Fund.
This week's issue supported by...             
AfCD 2017 SSA Guide Promo
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Sectors & Strategies...
Solar
Africa's growth in solar power
Africa's sunny skies means that is has an estimated 40% of the globe's solar power generating potential. This fact, combined with the continent's huge power need, have combined to push the increase in both venture capital investment in the sector and growth in solar generating capacity on the continent by a factor of 10 over the last 4 years.
Trends & Perspectives...
Trends
M&A in South Africa stalls due to political uncertainty
The political uncertainty roiling South Africa has had an adverse effect on inbound M&A volumes to the whole continent, according to Baker McKenzie's latest cross-border M&A index.
Perspectives
Investment success in Africa means getting out of the office
As the impact of the commodities slump continues to weigh on the continent's growth, and consequently on Africa's consumers and their spending power, The Economist observes that sitting in offices in London and Paris is not going to cut it for serious investors. But for those "willing to get their feet dirty" and take a few more risks, there is money to be made in  other ways.
Companies, People & Profiles...
Companies
ACI and Barak Fund Management ink collaboration deal
African Capital Investments and Barak Fund Management have agreed to a strategic collaboration with one another in order to offer their respective clients a wider suite of services.  
Companies
Grotech rebrands to Kalon Venture Partners
Grovest Tech, often referred to as Grotech, is rebranding itself to better reflect it's goal of becoming the continent's pre-eminent digital technology venture investor.  Kalon Venture Partners, as the South African 12J Venture Capital Company is now known, will continue to be led by Clive Butkow.
People
Denenga to lead Denton's banking and finance practice
Michael Denenga, the founder and director of specialist funds and financial services law firm Thip Denenga, has joined Dentons' Johannesburg office as a Senior Partner in the international law firms' banking and finance practice. A team of three associates from Thip Denenga has joined him in making the move.
Current Job Postings...
This week's featured jobs...             
Assistant Manager, Financial Modelling at Berkeley Energy  // berkeley-energy.com
Based in Nairobi, Kenya
Investment Director & Team Lead, DFID Impact Accelerator Fund at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Officer, Agribusiness, Food & Water (Africa) at FMO  // fmo.nl
Based in The Hague, Netherlands
Investment Officer at African Capital Alliance  // acagp.com
Based in Lagos, Nigeria
Private Equity Portfolio Analyst at FMO  // fmo.nl
Based in The Hague, Netherlands
Executive, Development Impact (Financial Institutions) at CDC  // cdcgroup.com
Based in London, United Kingdom
Upcoming Conferences...
Highlighted Event...             
Nigeria Com 2017
Lagos, September 20th to September 21st, 2017 
Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017 
Power Nigeria 2017
Lagos, September 5th to September 7th, 2017 
Bonds, Loans & Sukuk Kenya Briefing Day 2017
Nairobi, October 3rd, 2017 
New this week...
Powering Africa: Nigeria 2017 
Abuja, October 4th to October 5th, 2017 
Sub Saharan Africa Power Summit
Cape Town, October 25th to October 27th, 2017 
3rd Annual Urban & Infrastructure Development Conference
Kampala, October 30 to October 31st, 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 
Bonds, Loans & Sukuk Nigeria Briefing Day 2017
Lagos, November 20th, 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 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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