July 17th, 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...
There were, for Africa, some big numbers flying about last week for private equity deals. Only one concerned a direct investment of capital, however, while the others related to deals that had been done or are about to be done.

Milost Global, a New York-based private equity firm with $25 billion in committed capital, agreed to make its first investment in Ghana last week, agreeing a $300 million deal with Eco Medical Village to develop West Africa's largest private hospital in Accra. The financing will be made up of $100 million in equity and $200 million in debt, the latter bearing an annual interest rate of 5%, payable quarterly in cash.

The funds will be used to support the development and construction of Eco-Medical Hospital, a 380-ward/700-bed facility, which, once complete, will serve West Africa's upper and middle class consumers. Currently, this market segment seeks medical treatment outside Africa. In addition to the main hospital in Accra, Eco Medical plans to establish affiliated satellite units in each of the countries in the West African sub region.

Next up was Actis, who announced the launch of a $275 million higher education platform for Africa. Honoris United Universities, as the new platform has been branded, will be anchored by Actis' existing and planned education assets including Tunisia's Université Centrale Groupe, Morocco's Université Mundiapolis, Ecole Marocaine des Sciences de l'Ingénieur, Management College of Southern Africa and the REGENT Business School. The new platform currently serves 27,000 students at 48 campuses in 9 countries, numbers it expects to grow significantly as enrollment rises and more institutions are acquired and added to the platform.

At an extraordinary general meeting held last week, over 90% of Atlas Mara's shareholders approved the deal to sell at least a 30% stake to Fairfax Africa, an investment subsidiary of Canadian life insurer, Fairfax Financial. The $200 million deal means Fairfax will become the biggest single shareholder in the African banking platform, which has interests in seven sub-Saharan countries.

Fairfax will acquire at least 30% of the equity and mop up any additional shares that Atlas Mara's qualifying existing shareholders decline to take up. The convertible bond will convert at the issue price of $2.25 per share upon the closing of the offer.

On a much smaller scale, Long4Life, the listed investment firm launched by BidVest founder Brian Joffe earlier this year, announced its second deal last week, agreeing to pay R116 million, or about $9 million, in a cash and share deal for Sorbet, a South African chain of beauty salons.

The company, which sources investment opportunities among consumer sector-oriented companies or ones which the firm describes as having a "lifestyle" focus, found Sorbet's strong brand and nationwide footprint to also be appealing, positioning the firm well to expand both organically and through acquisition.

In fundraising news, the IFC is mulling a $20 million commitment to the Abraaj Global Credit Fund, a planned $500 million vehicle which will target debt investments predominantly in opportunities in mid-sized businesses which provide products and services to the consumers in emerging market regions. The fund's capital will be invested in growth credit and mezzanine debt lending deals in firms that are looking for growth capital to support their expansion plans. Typically these might involve financing capital expenditure, acquisition financing, project financing and other situations that require a customized credit solution.

There were a couple of significant job announcements last week. Oumar Seydi has assumed the role of the IFC's Regional Director for Sub-Saharan Africa, expanding his leadership role within the development finance institution. He originally joined the IFC in 1997 as an Investment Officer, and as held several senior roles withing the development finance institution since.

And Nabeel Laher has been appointed as Head of International Private Equity at Old Mutual Alternative Investments, succeeding his boss James Regout, who is retiring after an almost 40-year career at the firm. In his new role, Laher will oversee the investment activities and management of funds with more than $600 million in capital. 

Brookings has taken a look at the G20's Compact with Africa, details of which were announced last week. They examine the compact's structure and aims and the reasons why it may have a better chance of succeeding compared with previous G7-related initiatives for the continent.

And finally, an interesting piece in the Harvard Business Review exploring how doing a deal for a digital company is different from traditional M&A. What's more, as the article says, M&A executives may find that "...everything they thought they knew about M&A may actually not help."

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

New York-based Milost Global strikes $300mln private hospital deal with Eco Medical
Deals and Deal News...
Private Equity
Milost Global agrees $300mln deal with Eco Medical
Milost Global, a private equity firm based in New York, is making its first investment in Ghana, agreeing a $300 million deal with Eco Medical Village to develop West Africa's largest private hospital in Accra. The financing will be made up of $100 million in equity and $200 million in debt, the latter bearing an annual interest rate of 5%, payable quarterly in cash.
Private Equity
Long4Life acquires Sorbet in $9mln cash and share deal
Long4Life, the listed investment firm launched by BidVest founder Brian Joffe earlier this year, announced its second deal last week, agreeing to pay R116 million, or about $9 million, in a cash and share deal for Sorbet, a South African chain of beauty salons. The deal is expected to complete by the end of August.
Funds & Fundraising News...
Private Debt
IFC mulls commitment to Abraaj's $500mln credit fund
The IFC is mulling a $20 million commitment to the Abraaj Global Credit Fund, a planned $500 million vehicle which will target debt investments in Africa, Asia, Latin America, the Middle East and Turkey. The new fund will focus predominantly on opportunities in mid-sized businesses which provide products and services to the consumers in these emerging market regions.
Projects & Portfolio Companies...
Private Equity
Actis creates $275mln pan-African education platform
Specialist private equity investment firm Actis has launched a $275 million higher education platform for Africa. Honoris United Universities, as the new platform has been branded, currently serves 27,000 students at 48 campuses in 9 countries, numbers it expects to grow significantly as enrollment rises and more institutions are acquired and added to the platform.
Private Equity
Atlas Mara's shareholders give Fairfax deal the nod
At an extraordinary general meeting held last week, over 90% of Atlas Mara's shareholders approved the deal to sell at least a 30% stake to Fairfax Africa, an investment subsidiary of Canadian life insurer, Fairfax Financial. The $200 million deal means Fairfax will become the biggest single shareholder in the African banking platform, which has interests in seven sub-Saharan countries.
Private Equity
Vunani bullish on its private equity investments
Vunani's private equity investments have been one of the black-owned financial services and investment company's star performers of late, giving its executives cause to be upbeat about its prospects in 2018, especially for its coal mining investments and African expansion plans.
This week's issue supported by...             
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Policy, Regulations & Compliance...
Policy
Understanding the G20's Compact with Africa
A look at the G20's Compact with Africa, its structure and aims and the reasons why it lay have a better chance of succeeding compared with prior G7-related initiatives for the continent.
Trends & Perspectives...
Trends
10 African startups with unicorn status potential
A list from IT Web Africa of 10 startups who have the potential to achieve a valuation in excess of $1 billion, thereby becoming Africa's first "unicorns". The ranking has been complied using a mix of sales and investment data.
Perspectives
Impact investing in South Africa
While impact investing may be a relatively new discipline in South Africa, there is increasing investor awareness of, and interest in, the opportunities to have a positive impact while still earning decent returns. A summary of the key points emerging from a recent event on the subject hosted by Nedbank Private Wealth and Moneyweb.
Perspectives
How M&A differs when buying digital companies
An interesting article in the Harvard Business Review explores how doing a deal for a digital company is different from traditional M&A. In addition, as the article says, M&A executives may find that "...everything they thought they knew about M&A may actually not help."
Companies, People & Profiles...
Companies
Benchmark opens up shop in Cape Town
Benchmark International, an M&A boutique headquartered in Manchester, is opening its first office on the continent in Cape Town. The mid-market advisory firm, which according to its website works with firms valued up to $500 million, sees South Africa's appeal as an investment destination as offering significant potential to grow their business further.
People
Seydi new leader for IFC's activities in SSA
Cheikh Oumar Seydi has assumed the role of the IFC's Regional Director for Sub-Saharan Africa, expanding his leadership role within the development finance institution and giving added impetus to the implementation of the IFC's global 3.0 strategy in the region.
People
Laher tapped to head international private equity at OMAI
Nabeel Laher, who originally joined Old Mutual Alternative Investments in 2015, has been appointed as Head of International Private Equity at the South Africa-based investment manager.
Current Job Postings...
This week's featured jobs...             
Investment Director, DFID Impact Acceleration Fund at CDC  // cdcgroup.com
Based in London, United Kingdom
Director, Digital Financial Services at LeapFrog Investments  // leapfroginvest.com
Based in London or Edinburgh, United Kingdom
Investment Director, Impact Fund, Intermediated Equity at CDC  // cdcgroup.com
Based in London, United Kingdom
Senior Operations Manager, Animal Protein at IFC // ifc.org
Based in Nairobi, Kenya
Assistant Manager, Financial Modelling at Berkeley Energy  // berkeley-energy.com
Based in Nairobi, Kenya
Associate, Equity Investments at CDC  // cdcgroup.com
Based in London, United Kingdom
Upcoming Conferences...
Highlighted Event...             
Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017 
New this week...
Power Nigeria 2017
Lagos, September 5th to September 7th, 2017 
New this week...
Nigeria Com 2017
Lagos, September 20th to September 21st, 2017 
Bonds, Loans & Sukuk Kenya Briefing Day 2017
Nairobi, October 3rd, 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 
New this week...
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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