October 30th, 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...             
SuperReturn Africa 2017
The Week in Brief...
Some of the bigger names in Africa's private capital investment ecosystem and their portfolio companies featured strongly in news from the continent last week. But despite that, it was a week of measured rather than manic activity, even if some of the numbers tended to the higher end of the scale. 

Let's start with the one and only fundraising item of the week. While the capital is not earmarked for Africa, it's an African private equity firm who is sponsoring it. For their third International Fund-of-Funds, Old Mutual Alternative Investments is looking to raise $300 million. It already has $250 million in hand and has backed 5 funds in North America and Europe so far. The fund's preferred commitments range from $15 million to $25 million in size in private equity managers who look for growth capital or special situations opportunities in mid-to-large sized businesses across several sectors. Targeted returns for the new fund were not available, but the first fund-of-funds reported an IRR of 11.1% net of costs as at the end of September while their second  is doing somewhat better, currently delivering a 16% IRR, again net of costs.

Investec Asset Management and RMB Ventures have announced the completion of their acquisition of Botswanan retailer and consumer goods company Kamoso. While the financial details of the transaction were not disclosed, it's thought the deal is the Southern African country's largest ever private equity investment. Kamoso is a roll up of 10 companies who supply supermarket chain Choppies, as well as other retailers, which was bought in 2015 by a consortium led by Standard Chartered Private Equity and Development Capital Partners in a deal reportedly worth $45 million.

TPG Growth has led a Series A2 round investment in Gro Intelligence, a New York and Nairobi-based agricultural data analytics business. The investment was sourced via TPG's strategic relationship with EchoVC and is the second deal this year that's come about as a result of the relationship between the two investment firms. In May this year, they both took part in a $22 million deal for Nigeria's Frontier Cars Group.

Africa50 has signed long-term financing agreements with Scatec Solar and Norfund to develop utility scale photovoltaic power plants in Egypt. The African Development Bank-backed infrastructure fund is contributing equity in exchange for a 25% stake in the project, as part of an almost $450 million funding package. The deal is the first early stage investment for the fund.

In portfolio company-related deals, Abraaj-backed Libstar has had its deal to acquire Sonnendal Dairies approved by South Africa's Competition Commission.   Yoghurt producer Sonnendal Dairies joins a portfolio of 28 fast moving consumer goods companies operated by Johannesburg-headquartered Libstar throughout South Africa. The group, which generates in excess of R7 billion (about $495 million) in revenues annually, sells to the foods service industry and the private label segments of larger retailers. In July this year, Bloomberg quoted sources as saying that Abraaj was evaluating the possibility of an IPO for Libstar, which could value the firm as much as $1 billion.

Another story about a potential IPO has been making the rounds. According to Dow Jones, Vivo Energy Investments, a large licensee of Royal Dutch Shell's fuels and lubricants in Africa owned by Vitol and private equity firm Helios Investment Partners is said to be working with several investment banks who would potentially underwrite the offer, which could value the company in excess of $3 billion.

Sun Exchange, a solar cell marketplace based in South Africa, has raised $1.6 million from a group of South African and American investors. Through Sun Exchange's solar marketplace, investors can buy solar cells which are then leased to businesses, hospitals, factories and other end users in power-hungry parts of the world. The company arranges solar equipment leases for investors and handles revenue collection and distribution systems enabling passive streams of rental income. The block chain-based platform gives retail and institutional investors worldwide access to solar panel ownership, whilst giving businesses and communities in emerging markets the ability to purchase renewable power that both reduces costs and drives sustainable development.

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

Investec Asset Management and RMB Ventures seal deal for Kamoso, supplier to supermarket chains
Image Credit: Choppies
Deals and Deal News...
Private Equity
Investec and RMB Ventures complete Kamoso deal
Investec Asset Management and RMB Ventures have announced the completion of their acquisition of Botswanan retailer and consumer goods company Kamoso.
Private Equity
TPG Growth leads Gro Intelligence's Series A2 round
TPG Growth has led a Series A2 round investment in Gro Intelligence, a New York and Nairobi-based agricultural data analytics business.
Private Equity
Africa50 finalizes equity stake in Egyptian solar plants
Africa50 has signed long-term financing agreements with Scatec Solar and Norfund to develop utility scale photovoltaic power plants in Egypt.
Venture Capital
Sun Exchange raises $1.6mln seed round
Sun Exchange, a solar cell marketplace based in South Africa, has raised $1.6 million from a group of South African and American investors.
Funds & Fundraising...
Private Equity
OMAI targets $300mln for international Fund-of-Funds III
Old Mutual Alternative Investments is currently raising capital for its third international private equity fund-of-funds.
This week's issue supported by...             
Africa 2017
Projects & Portfolio Companies...
Private Equity
Vivo Energy said to be mulling an IPO
Vivo Energy Investments, a large licensee of Royal Dutch Shell's products in Africa is said to be mulling an IPO.
Private Equity
Abraaj-backed Libstar acquires Sonnendal Dairies
Libstar, a large unlisted food and personal care business in South Africa, has had its deal to acquire Sonnendal Dairies approved by the country's Competition Commission.
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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.
Trends & Perspectives...
Trends
ICA report find infrastructure investment in Africa slips
Commitments to African infrastructure investment fell 21% last year as Chinese and private-sector funding slowed, according to the latest report by the Infrastructure Consortium for Africa .
Renewables
Sub-Saharan Renewables: Growing Green
TXF News finds that as the costs of renewables projects shrink, and the small-scale sector starts to take off, upscaling projects begins to look more bankable.
Kudos Image
ESG
How ESG-ready are Africa's unlisted companies?
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 by KudosAfrica in December in association with Africa Capital Digest, will be eagerly anticipated. To take part in this year's survey, click here today.
This week's issue supported by...             
Bonds & Sukuk Nigeria
Companies, People & Profiles...
People
Van Zwieten steps down as CEO of EMPEA
Robert van Zwieten, CEO of EMPEA is stepping down from his role in early November after four and a half years at the helm of the industry association.
Current Job Postings...
This week's featured jobs...             
Chief Operating Officer at Cytonn Investments  // cytonn.com
Based in Nairobi, Kenya
Director of Project Finance at Africa50  // africa50.com
Based in Casablanca, Morocco
Senior/Principal Investment Officer at Africa50  // africa50.com
Based in Casablanca, Morocco
Investment Officer at African Development Bank  // afdb.org
Based in Abidjan, Cote d'Ivoire
Investment Officer at Africa50  // africa50.com
Based in Casablanca, Morocco
Senior Manager. Transaction Diligence at EY  // ey.com
Based in Cairo, Egypt
Transaction Advisor, Energy at CrossBoundary  // crossboundary.com
Based in Johannesburg, South Africa
Relationship Manager, Institutions at Cytonn Investments  // cytonn.com
Based in Nairobi, Kenya
Investment Associate, Financial Institutions, Equity Investments at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate, Intermediated Equity at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate, Investment Teams at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Analyst, Infrastructure at IFC  // ifc.org
Based in Johannesburg, South Africa
Investment Analyst at Africa50  // africa50.com
Based in Casablanca, Morocco
Upcoming Conferences...
Highlighted Event...             
9th Africa Public Private Partnership Conference 
Cape Town, November 23rd to November 24th, 2017 
META Projects 2017
Dubai, November 1st to November 2nd, 2017 
Finnovation Africa: Ethiopia 2017 
Addis Ababa, November 3rd, 2017 
AfricArena 2017 
Cape Town, November 6th to November 7th, 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 
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 
Sharm El Sheikh, December 7th to December 9th, 2017 
2018 Events...
SAVCA 2018 Annual Conference 
Stellenbosch, February 21st to February 22nd, 2018 
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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