April 18th, 2017
The  weekly roundup of Africa's Private Capital news


  

Here's the latest wrap of 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...             
TMT Africa 2017
The Week in Brief...
Unlike the last couple of weeks, fundraising did not feature in Africa's private capital investment world last week. Deals did though, with some of the continent's better-known fund managers involved in backing or exiting businesses.

The first deal sees three of them participating in one form or another. Investec Asset Management went ahead and added a fifth asset to its second private equity fund's portfolio. The transaction, a private equity secondary deal, sees the private equity arm of the South African financial services firm acquire Grupo San Jose & Lopez, a major road freight transporter between North Africa and Europe, giving fellow-private equity investors AfricInvest and Mediterrania Capital Partners full exits from their stakes. Terms were undisclosed.

AfricInvest and Mediterrania Capital Partners first backed SJL in mid-2013, joining forces to take a minority stake in the company. Eventually, the two firms acquired the remainder of the company, completing the deal to assume full ownership in August 2015. They likely earned a solid return, given SJL's performance over the period which tripled EBITDA on the back of 38% in cumulative growth.

In another full exit, Actis has sold its remaining stake in Edita Foods to a large group of investors from the USA, UK, Germany, South Africa and the United Arab Emirates. The sale of the 7.5% stake was executed via an accelerated book build on the Egyptian Stock Exchange.

Actis first backed the North African branded snack food business in 2013, acquiring a 30% stake in a $102 million deal. In early 2015, the private equity firm partially exited its holding in Edita Foods, selling 15% of its stake in an oversubscribed IPO. At the time, the IPO price of EGP 18.5 million gave Edita Foods a market capitalization of EGP 6.7 billion or approximately $890 million. 

Quantum Global, a Swiss-headquartered private equity investment firm focused on Africa, is launching a new power development platform on behalf of QG Africa Mezzanine, its $250 million investment fund. QG Power Africa is being established in partnership with Tomé International and International Power Corporation and will focus on opportunities to develop power assets across sub-Saharan Africa.

West Africa-focused Synergy Capital is backing Northstar Finance Services, a platform company building a portfolio of financial services assets. The capital is being used to support several investments being made by Northstar, which aims to become a leading retail financial services brand in West Africa. These include establishing interests in Safetrust Nigeria, a large mortgage bank, Northstar Home Finance, a new mortgage provider in Ghana, Avance Insurance, a Ghana-based life assurer and savings business and Ping Express, a Money Transfer Operator which recently won its operating license from the Central Bank of Nigeria.

In South Africa, meanwhile, Naspers, the continent's largest listed company, is investing almost $70 million in Takealot which is also backed by Tiger Global Management. The deal, which is subject to Competition Commission approval, will increase Naspers' stake in the South African e-commerce company to 53.5%, with Tiger Global's stake shrinking to 34%.

In the latest in a series of recent moves, asset management and advisory firm Imara Holdings was de-listed from the Venture Capital Board of the Botswana Stock Exchange at the end of March. The news was expected, following the firm's acquisition by FWA, an investment holding company formed by Fleming Wulfsohn Africa earlier in the month.

FWA, which is backed by several family offices from the USA, Europe and South Africa, first took a financial position in Imara in 2015 since when, FWA's founders, Hector Fleming, Harry Wulfsohn and Tom Gaffney have been involved in Imara's operations. It's expected that the acquisition and subsequent de-listing will help reduce the company's cost base, simplify its core focus and concentrate management efforts to grow the group's underlying divisions.

And finally this week, Frannie Léautier is stepping down from her role as Senior Vice President at the African Development Bank due to family reasons. She joined the development finance institution in March last year. Charles Boamah, the Bank's current Vice President for Finance, is stepping into the Senior Vice President role. Akinwumi Adesina, the Bank's President welcomed his appointment, saying "This is a seamless transition. Charles Boamah brings over 25 years of development finance experience and deep knowledge of the Bank."

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

Investec acquires leading freight and logistics company San Jose & Lopez from AfricInvest and MCP
Image Credit: San Jose & Lopez
Deals News...
Private Equity
Investec makes fifth deal for its $295mln second fund
Investec Asset Management has acquired Grupo San Jose & Lopez, a major road freight transporter between North Africa and Europe, in an undisclosed private equity secondary deal.  The transaction, which is the fifth for Investec Africa Private Equity Fund 2, gives fellow-private equity investors AfricInvest and Mediterrania Capital Partners full exits from their stakes in the logistics operator.
Private Equity
Actis exits remaining stake in Edita Foods
Actis has sold its remaining stake in Edita Foods to a large group of investors from the USA, UK, Germany, South Africa and the United Arab Emirates. The sale of the 7.5% stake was executed via an accelerated book build on the Egyptian Stock Exchange, completing a full exit for the pan-emerging markets private equity firm. Financial terms of the deal were not disclosed.
Private Equity
Synergy Capital backs Northstar in undisclosed deal
Adding a ninth company to its $100 million+ private equity fund's portfolio, West Africa-focused Synergy Capital is backing Northstar Finance Services, a platform company building a portfolio of financial services assets. Terms of the deal remain undisclosed.  
This week's issue supported by...             
AFSIC 2017
Projects & Portfolio Companies...
Power
Quantum launches power development platform
Quantum Global, a Swiss-headquartered private equity investment firm focused on Africa, is launching a new power development platform on behalf of QG Africa Mezzanine, its $250 million investment fund. QG Power Africa is being established in partnership with Tom é International and International Power Corporation and will focus on opportunities to develop power assets across sub-Saharan Africa.
Ecommerce
Naspers puts up another $70mln for Takealot
Naspers, the continent's largest listed company, is investing almost $70 million in Takealot which is also backed by Tiger Global Management. The deal, which is subject to Competition Commission approval, will increase Naspers' stake in the South African e-commerce company to 53.5%, with Tiger Global's stake shrinking to 34%. In 2014, when Takealot merged with Naspers-owned Kalahari, Tiger Global and Naspers each had a 41% share in the company.  
Sectors & Strategies...
Venture Capital
Strategies for VCs in Africa
A 30-minute televised panel discussion with a few international venture investors exploring the opportunities and challenges the perceive in sourcing and executing deals in Africa.
Banks
Banking M&A in Kenya set to increase
Low valuations and the Central Bank of Kenya's plan to lift the moratorium on licensing new banks could lead to an uptick in M&A activity in the country's banking sector.
Trends & Perspectives...
Perspectives
Investors may shy from backing South African funds
The hit to South Africa's sovereign credit rating could make it more challenging for private equity investors to raise capital from international investors through traditional means, spurring alternative initiatives to plug the potential fundraising gap.
This week's issue supported by...             
AfCD 2017 SSA Guide Promo
The essential 2017 Guide to sub-Saharan Africa's
Key Private Equity Investors
 
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  • Expert insight on fund raising, due diligence, execution and exits
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Companies, People & Profiles...
Companies
Imara de-lists from Botswana Stock Exchange
In the latest in a series of recent moves, asset management and advisory firm Imara Holdings was de-listed from the Venture Capital Board of the Botswana Stock Exchange at the end of March. The news was expected, following the firm's acquisition by FWA, an investment holding company formed by Fleming Wulfsohn Africa earlier in the month.
People
Léautier steps down from AfDB role
Frannie Léautier is stepping down from her role as Senior Vice President at the African Development Bank due to family reasons. She joined the development finance institution in March last year.
Upcoming Investment Missions...
African Agri Council's Investor Discovery Trade Mission and Technical Tour
3 dates in 3 cities

London, May 23rd to May 25th, 2017
Hong Kong, June 21st to June 23rd, 2017

To request an invitation to one of these dates, please send an email to Julia Barton-Hill.
Current Job Postings...
Highlighted Job...             
Head, Alternative Investmens at Stanbic IBTC Bank  // careers24.com
Based in Lagos, Nigeria
Partner, Africa at Capria  // capria.vc
Based in London, UK or Africa
Portfolio Manager, Africa at Deutsche Bank  // db.com
Based in London, United Kingdom
Principal Banker, Infrastructure at EBRD  // ebrd.com
Based in Casablanca, Morocco
Investment Associate, Intermediated Equity at CDC  // cdcgroup.com
Based in London, United Kingdom
Legal Counsel, Debt at CDC  // cdcgroup.com
Based in London, United Kingdom
New to AfCD this week...
Deal Originator, Commodities for investment fund  // efinancialcareers.com
Based in Johannesburg, South Africa
Principal Policy Officers at the African Development Bank  // afdb.org
Based in Abidjan, Côte d'Ivoire
Investment Manager, Africa at Opes Impact Fund  // linkedin.com
Based in Nairobi, Kenya
Investment Analyst at 54 Capital  // indeed.co.uk
Based in London, United Kingdom
Upcoming Conferences...
Highlighted Event...             
East Africa Real Estate Investor Forum 2017 
London, June 8th, 2017 
Africa Tech Summit 
London, April 20th, 2017 
Africa Financial Services Investment Conference 2017 
London, May 3rd to May 5th, 2017 
New this week...
4th Annual Ghana Agribusiness Investment Summit 
Accra, May 4th, 2017 
African Nordic Business Conference 2017 
Helsinki, May 4th, 2017 
Euromoney Kenya Conference   // euromoney.com
Nairobi, May 9th, 2017 
AFC Live 2017 
Abuja, May 15th to May 16th, 2017 
IFC & EMPEA's Annual Global Private Equity Forum 
Washington, DC, May 15th to May 17th, 2017 
New this week...
Zambia Renewable Energy & Power Infrastructure Investment Conference   // conventionventures.com
Lusaka, May 17th, 2017 
TMT Finance Africa 2017 
London, May 24th, 2017 
19th Annual Africa Energy Forum 
Copenhagen, June 7th to June 9th, 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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