July 10th, 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...             
Finnovation Ethiopia
The Week in Brief...
This week, we're starting with some interesting fund news. Yeelen Capital announced that has held a €30 million initial close for the Yeelen Financial Fund, a new private equity investment vehicle fund focused on opportunities in the financial services sector in the WAEMU region. 

Yeelen was selected by the West African Development Bank earlier this year to raise, invest and operate the new fund following a competitive bidding process.Ultimately, the fund manager, which is staffed by an investment team from Cauris Management, is seeking to raise a total of €150 million by the end of 2018. 

Phatisa announced that it has agreed to buy JSE-listed Torre Industries' remaining interest in Kanu Equipment. The transaction increases Phatisa's shareholding to 85%, with the remaining balance being held by Kanu's management. Pre-deal, Phatisa had a 40% interest, whilst the firm's management team held a 5% stake.

The deal is being transacted through Phatisa's $246 million African Agriculture Fund. The fund originally backed Kanu in June 2016, reportedly spending approximately $15 million for a 40% interest in the agricultural and construction equipment supplier.

In other control investment news, Sanari Capital has completed its investment in Fernridge Solutions, taking a 51% stake in the geo-spatial data and solutions provider. The deal was transacted, in part, through Sanari Growth Partners, the firm's $15 million 12J fund.  

As a result of the transaction, Sanari will take three seats on Fernridge's Board of Directors. In addition to Samantha Pokroy, who led the deal for the investor, Moushmi Patel and Neo Maruatona Ratau will also be representing Sanari on the company's board.

EXEO Capital, the fund manager that oversees the Agri-Vie family of funds, is selling its interest in Fairfield Dairy to a private investment trust linked to the firm's founding family. The KwaZulu-Natal-based dairy producer had been part of the portfolio of Agri-Vie's $100 million first fund, which is now in its harvesting phase.

Agri-Vie Fund I originally invested in Fairfield Dairy in 2009, and was the fund's first foray into the dairy sector. Since then the firm has expanded considerably, both strengthening its operations and building a reputation as a dynamic, innovative dairy company. According to EXEO partner Izak Strauss, market interest in the asset prior to the conclusion of the sale was considerable.

In the latest of a string of deals, XSML Capital announced yet another investment for the recently closed $50 million African Rivers Fund last week, this time taking an undisclosed stake in Monishop, a well-known supermarket in Kinshasa.

Monishop is African Rivers Fund's fifteenth investment since it held its first close in May 2016. The fund follows much the same strategy as its $19 million predecessor fund and typically backs well-managed, growing small and medium businesses in the Democratic Republic of Congo, Uganda, Congo and eventually Burundi with debt, equity or mezzanine capital in deals ranging from $100,000 to $5 million in size.

And finally, in an interesting profile, Forbes Africa  sat down with father and son Jannie and Piet Mouton and heard how the family built up PSG, the investment giant founded 22 years ago. It makes for an interesting read.

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

EXEO Capital exits Fairfield Dairy in undisclosed deal
Deals and Deal News...
Private Equity
Phatisa raises Kanu stake to 85%
Phatisa, the pan-African private equity firm, has agreed to buy JSE-listed Torre Industries' remaining interest in Kanu Equipment. The transaction increases Phatisa's shareholding to 85%, with the remaining balance being held by Kanu's management. Pre-deal, Phatisa had a 40% interest, whilst the firm's management team held a 5% stake. Financial terms of the deal were not disclosed.
Private Equity
EXEO Capital sells interest in Fairfield Dairy
EXEO Capital, the Africa-focused mid market private equity firm which manages the Agri-Vie family of funds, is selling its interest in Fairfield Dairy to a private investment trust linked to the firm's founding family. The KwaZulu-Natal-based dairy producer had been part of the portfolio of Agri-Vie's $100 million first fund, which is now in its harvesting phase. Terms of the deal, which is subject to regulatory approval, were not disclosed.
Private Equity
Sanari takes 51% stake in Fernridge Solutions
Sanari Capital, a private equity investor targeting mid and small cap opportunities in South Africa, has completed its control investment in Fernridge Solutions, taking a 51% stake in the geo-spatial data and solutions provider. The deal was transacted, in part, through Sanari Growth Partners, the firm's $15 million 12J fund. Financial terms of the deal were not disclosed.
Private Equity
XSML backs Monishop in latest of a string of deals
XSML Capital, a Dutch private equity fund manager focused on opportunities in Central Africa announced yet another investment for the recently closed $50 million African Rivers Fund last week, this time taking an undisclosed stake in Monishop, a well-known supermarket in Kinshasa. The capital will be used to fund the development of a large, new supermarket in the centre of the city.
This week's issue supported by...             
AfCD 2017 SSA Guide Promo
JUST PUBLISHED!
Africa Capital Digest's
2017 Guide to sub-Saharan Private Equity
 
Get your digital copy of Africa Capital Digest's 2017 Guide to sub-Saharan Private Equity and add the most comprehensive, up-to-date source of information on the leading fund managers located in the African subcontinent with...
 
*Profiles with Names, Emails of each firm's investment professionals
*Details of active funds, preferred deal sizes, regional and sector preferences
*Information on current portfolio companies and projects
*Headquarter and Regional Office contact details
*Quick reference indexes of fund managers and portfolio companies by sector
 
Click here to order a copy for your firm today.

Funds & Fundraising News...
Private Equity
Yeelen raises over €30mln for financial fund's first close
Yeelen Capital announced that has held a €30 million initial close for the Yeelen Financial Fund, a new private equity investment vehicle fund focused on opportunities in the financial services sector in the WAEMU region.
Trends & Perspectives...
Trends
The 'Chinafrica' trend will impact Silicon Valley and Wall Street
In a contributed article for Techcrunch, Lux Capital co-founder Josh Wolfe takes a macro look at how the relationship between China and Africa has evolved and how that is likely to impact the West's capital markets and technology ecosystems.
Perspectives
African companies stay home for their IPOs
Baker McKenzie's latest cross-border IPO index reveals that, for the first time in 5 years, there were no cross-border IPOs from African companies in the first half of 2017. While the amount of capital raised via domestic listings his higher than the same period last year, a combination of political and economic instability appears to be affecting the volume of cross-border IPOs on the continent.
Perspectives
Islamic Finance finds its feet in North Africa
With North African countries' share of global Islamic finance assets standing at just 1%, there is significant potential for the region's banking and finance sectors. Governments in several countries are increasingly searching for Sharia-compliant funding alternatives to rein in their current account and budget deficits.
Companies, People & Profiles...
Profile
Building PSG, the Mouton family's investment giant
Last week, Forbes Africa sat down with father and son Jannie and Piet Mouton and heard how the family built up PSG, the investment giant founded 22 years ago.
Current Job Postings...
This week's featured jobs...             
Assistant Manager, Financial Modelling at Berkeley Energy  // berkeley-energy.com
Based in Nairobi, Kenya
Investment Director, Impact Fund, Intermediated Equity at CDC  // cdcgroup.com
Based in London, United Kingdom
Chief Executive Officer at WDB Trust  // linkedin.com
Based in Johannesburg, South Africa
Investment Associate at CrossBoundary  // crossboundary.com
Based in Johannesburg, South Africa
Upcoming Conferences...
Highlighted Event...             
Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017 
West Africa Power Summit
Dakar, July 12th to July 14th, 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 
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

Africa Capital Digest is a product of Rowayton Press 
Customer Service |  thall@africacapitaldigest.com | P.O. Box 141,
Rowayton, CT 06853, USA