September 25th, 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...
Africa's power sector saw the biggest investment deal last week. On the sidelines of U.N. General Assembly meeting in New York, Highland Group Holdings signed an agreement to co-invest $100 million alongside Symbion Energy in a methane gas power generation project on Rwanda's Lake Kivu.  The capital allows Symbion to begin work in earnest on the project in November, starting with the rehabilitation and expansion of KP1, a plant the power developer acquired in 2016.

High profile alternative investment firm Ethos Private Equity made a deal involving itself last week with the sale of a 30% stake to a consortium made up of RMI Investment Managers and Royal Investment Managers. It's expected that Ethos will reap a number of benefits from the deal. Among them, fresh capital to push the firm's growth strategy more quickly and access to the consortium's distribution networks and its broader base of potential investors.

Staying in the realm of financial services deals, it was announced that AFIG Funds is backing FSDH Merchant Bank in an undisclosed deal.  Based in Nigeria, FSDH offers a range of services including merchant, corporate and investment banking solutions as well as asset and pension fund management services. The transaction was dibe via Atlantic Coast Regional Fund II which backs established, successful companies who are looking for growth capital. According to AFIG Fund's website, the fund's investment ticket size ranges between $5 million and $20 million.

In South Africa's media sector, Africa Special Opportunities Capital completed its deal to recapitalize Okuhle Media. The transaction was prompted earlier by a number of events destabilizing to South Africa's film and TV industry earlier in the year. The transaction is being done via ASOC Fund I, which typically invests up to R50 million or $3.8 million in each transaction. 

Milost Global, an Africa-focused private equity firm headquartered in New York, is launching a $1 billion SME fund in partnership with investment holding company Monnaie Africa. Isilo, as the General Partnership will be know, will be domiciled in Mauritius, with Milost holding a 70% interest in the firm. 10-year, generalist private equity fund will target buyout and restructuring opportunities in small and medium-sized enterprises on the continent.

Mediterrania Capital's latest fund has received a capital commitment from another development finance institution.  The Africa Development Bank has approved a $15 million equity investment in the planned €250 million fund which will invest in companies in North Africa as well as a select number of sub-Saharan countries.Over the last few months, several DFIs including the IFC, EIB and EBRD have indicated they are committing capital to the fund.

Imara Holdings is acquiring Kura Capital to create one of the larger pan-African asset management companies with $200 million in assets. The deal is expected to close once standard regulatory approvals have been granted. Imara is owned by FWA Financial, an investment company backed by nine family offices from the USA, Europe and South Africa with significant experience of investing Africa and within the financial services sector.

Finally, there were a couple of interesting industry published last week. In Rand Merchant Bank's annual "Where to invest in Africa" report, Egypt takes the top spot for 2018, displacing South Africa for the first time since the report's inception. And a  new report from the African Technology Foundation and the Liberalizing Innovation Opportunity Nations partnership takes a continental, regional, and industry specific look at the evolution of technology ecosystems on the continent.

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

Highland Group Holdings is investing $100  million alongside Symbion Energy in a methane gas power project on Rwanda's Lake Kivu.
Image Credit: Symbion Energy
Deals and Deal News...
Private Equity
Highland Group Holdings invests $100mln with Symbion
Highland Group Holdings is investing $100 million of equity in Symbion Energy's planned $370 million methane gas power generation project on Lake Kivu in Rwanda.
Private Equity
Consortium backs Ethos Private Equity for 30% stake
RMI Investment Managers and Royal Investment Managers have agreed to back Ethos Private Equity in a series of transactions which will result in the consortium holding a 30% stake in the African private equity firm.
Private Equity
AFIG Funds backs FSDH Merchant Bank
FSDH Merchant Bank, a financial services company, has been backed by AFIG Fund's Atlantic Coast Regional Fund II.
Private Equity
ASOC backs Okuhle Media in recap deal
Africa Special Opportunities Capital has completed its deal to recapitalize Okuhle Media.
This week's issue supported by...             
SSA Power 2017
Funds & Fundraising...
Private Equity
Milost Global targets $1bln for SME fund
Milost Global, an Africa-focused private equity headquartered in New York, is launching a $1 billion SME fund in partnership with investment holding company Monnaie Africa..
Private Equity
AfDB backs Mediterrania's latest fund with $15 million
The African Development Bank has become the latest development finance institution to commit capital to Mediterrania Capital's third fund.
Private Debt
OPIC mulls $40 million 10-year loan to ALCB Fund
OPIC, the U.S. Government's development finance institution is considering a $40 million, 10-year loan to the African Local Currency Bond Fund.
Sovereign Wealth
Private equity returns boost FSDEA's performance
Angola's sovereign wealth fund announced that it had become profitable for the first time in 2016 following the appreciation of its private equity assets .
Projects & Portfolio Companies...
Financial Services
Imara adds Kura Capital to asset management business
Imara Holdings, an asset management and advisory firm, has acquired Kura Capital in an undisclosed deal..
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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.
Policy, Regulation & Compliance...
Policy
Moving to a reciprocal U.S.-Africa trade relationship
While AGOA is not set to expire until 2025, the complexity involved in establishing and maintaining bi-lateral trade relationships requires policy makers to consider options for a post-AGOA reciprocal relationship.
Regulation
South Africa's merger thresholds and filing fees to rise
On October 1st, the thresholds and filing fees for large and intermediate merger notifications are set to change. The country's Ministry of Economic Development published the the details on September 15th.
 
Read more...
Sectors & Strategies...
Oil & Gas
Pipelines offer O&G investors opportunity
With many stalled or unfunded pipeline projects, a look at the state of play across sub-Saharan Africa and a possible model from East Africa that private capital investors and lenders can replicate.
Kudos Image
ESG
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.
Technology
The state of play for Africa's technology sector
A new report from the African technology Foundation and the Liberalizing Innovation Opportunity Nations partnership takes a continental, regional, and industry specific look at the evolution of technology ecosystems on the continent.
This week's issue supported by...             
Morocco Gas Options
Trends & Perspectives...
Trends
Egypt takes top investment spot in RMB's 2018 report
Rand Merchant Bank's annual "Where to invest in Africa" report puts Egypt in the top spot for 2018, displacing South Africa for the first time since the inception of the annual report..
Perspectives
Can South Africa support 5 Stock Exchanges?
With South Africa's Financial Service Board granting its fourth new stock exchange licence of the past two years to Equity Express Securities Exchange, Moneyweb asks whether there is room in the market given the size of the country's economy.
Perspectives
Africa's tech eco-systems couldn't and shouldn't mimick Silicon Valley
As Africa's diaspora returns to the continent in increasing numbers, Quartz reports that they should resist the urge to view regional tech-ecosystems through a Silicon Valley lens.
Companies, People & Profiles...
People
Abraaj hires de Boer as a Managing Partner
The Abraaj Group has appointed former diplomat and McKinsey Partner Kito de Boer as Managing Partner.
People
SAVCA appoints 4 new Board members
At its annual general meeting last week, SAVCA announced the appointment of four leading investment executives to the South African private equity industry association's board.
Current Job Postings...
This week's featured jobs...             
Head, Startup Success & Services, Accelerator Africa at Google  // google.com
Based in Lagos, Nigeria
Head, Operations, Accelerator Africa at Google  // google.com
Based in Lagos, Nigeria
Investment Associate, Industrial Businesses, Equity at CDC // cdcgroup.com
Based in London, United Kingdom
Associate, Project & Infrastructure FInance at Investec  // investec.com
Based in London, United Kingdom
Upcoming Conferences...
Highlighted Event...             
International Islamic Banking Summit Africa 
Djibouti, November 8th to November 9th, 2017 
Bonds, Loans & Sukuk Kenya Briefing Day 2017
Nairobi, October 3rd, 2017 
Powering Africa: Nigeria 2017 
Abuja, October 4th to October 5th, 2017 
Africa Private Wealth Forum 
Casablanca, 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 
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 free, 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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