October 12th, 2015 
The  weekly roundup of Africa's Private Capital news


 

Here's this week's wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces for our review. Thank you for being a reader and we hope you continue to find the newsletter useful.

We'd be delighted if you shared it with any interested colleagues and/or partners.  If they would like to receive their own weekly copy, they're more than welcome to sign up here.   
 
As ever, if you'd like to get in touch or share any tips or comments, please contact me  at acunningham@africacapitaldigest.com.  Many thanks for reading.
This week's issue supported by...             
SuperReturn Africa 2015
The week in  brief...
Actual deals in Africa's private capital investment sector were thin on the ground last week. There were no significant private equity or infrastructure deals reported, but Adlevo Capital did lead a consortium of venture capital investors backing Nigerian mobile payments company, Paga, in its $13 million Series B round. Additional terms of the deal were not disclosed.

If there were no larger scale private equity deals last week, there were a couple of reports highlighting planned investments. The most notable was from Reuters with news that global investment firm KKR is planning to establish an office in Nigeria and invest up to $100 million in private equity and infrastructure deals in Africa over the next 12 months. The global investment firm's preferred sectors would be agriculture, food, energy and infrastructure.

Meanwhile, Fanisi Capital, the $50 million fund, has indicated that it is planning to invest an additional $19 million in portfolio holding  Haltons Pharmacy over the next year. The private equity firm originally backed Haltons with $3 million in 2013 for an undisclosed stake. The additional capital will be used to quadruple the firm's outlet network from a current level of 50 stores to over 200 by 2017.

In fundraising news, Ascent Capital held the final close for its maiden fund at $80 million, beating its original target by more than 30%.  Investors in the fund include the Norwegian Investment Fund for Developing Countries (Norfund), Britain's CDC Group, Development Bank of Austria (OeEB), LGT Group and most significantly, first-time investments from local pension funds, such as Kenya Power and Lighting Company and Nation Media Group. The Fund partners' investment commitment amounts to 6% of the $80 million fund.

Kenya's Capital Markets Authority has given the go ahead for STANLIB to launch the region's first real Estate Investment Trust (REIT).  According to Nation Media Group's Business Daily , the fund manager is looking to raise up to $120 million via a listing on the Nairobi Securities Exchange's Alternative Investment Market.

Finally for this week's summary, a couple of interesting trends caught our eye. The Financial Times reports that U.S. pension funds are looking for more African private equity exposure as they hunt for yield. And in a week which saw  Tidjane Thiam, Credit Suisse's CEO, speak of the "madness" for African nations to rely on foreign currency loans as well as Ghana raising $1 billion in its fourth Eurobond issue, Capital Markets in Africa has published a useful summary of the state of play in Africa's Sovereign Eurobond market.
 
You can review these and other stories by  scrolling  down and reviewing the headlines, abstracts and links. 

KKR, who backed Afriflora in 2014, plan to invest up to $100 million in Africa over the coming year
Deal News...
Venture Capital
Adlevo Capital leads $13mln Series B Round for Paga  // techmoran.com
Adlevo Capital has led a $13 million Series B investment in Nigerian mobile payment firm Paga. Other investors in the round included Omidyar Network, Goodwell West Africa, Acumen Fund and Capricorn Investment Group. The capital will be used to support the development of the firm's agent network. Additional terms of the deal were not disclosed.
Fund & Financing News...
Private Equity
Ascent wins $80mln in commitments for ARVF
Ascent Capital has held the final close for the Ascent Rift Valley Fund, hitting $80 million in commitments and reaping 30% more capital for the maiden fund than it had originally planned.  The fund, which launched with $40 million in February last year, looks to invest between $2 million and $10 million in East African companies that benefit from the positive consumer spending growth patterns in the region. Its preferred sectors include services and distribution firms, as well as manufacturers.
Real Estate Investment Trusts
STANLIB gets nod for $120mln REIT
STANLIB, the $42 billion pan-african investment manager, has been given the go-ahead to launch East Africa's first Income Real Estate Investment Trust (I-REIT) by Kenya's Capital Markets Authority. According to Nation Media Group's Business Daily, the fund manager is looking to raise up to $120 million via a listing on the Nairobi Securities Exchange's Alternative Investment Market.
Sovereign Debt
Ghana's Eurobond issue raises $1bln at higher coupon
Ghana sold $1 billion of 15-year Eurobonds at a coupon rate of 10.75%, a higher yield than the government had sought, according to Bloomberg.  The debt matures in 2030, with three equal redemption payments in October 2028, October 2029 and October 2030. The Africa Report quotes the country's Finance Minister, Seth Terkper, as saying that the issue was oversubscribed by 100%. The notes will be listed in the Ghanaian and Irish stock exchanges.
This week's issue supported by...             
Small
AfCD's 2016 Guide to sub-Saharan Private Equity

"The must-have reference and planning resource for investors and their advisers exploring the private equity investment opportunity in sub-Saharan Africa."

Order Africa Capital Digest's 2016 Guide to sub-Saharan Private Equity today at the pre-publication discount and add the most comprehensive, up-to-date source of information on the leading fund managers located in the African subcontinent. Benefit from:
  • 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
  • Expert insight on fund raising, due diligence, execution and exits
  • Quick reference indexes of fund managers and portfolio companies by sector
Projects & Portfolio Companies...
Private Equity
Fanisi to invest $19mln in Haltons over next 12 months  // africacapitaldigest.com
Fanisi Capital, the Kenya-based private equity fund manager is planning to invest an additional $19 million in Haltons Pharmacy. The capital will be used to expand the firm's network of outlets which is targeted to quadruple to more than 200 stores by 2017 from its current platform of 50 outlets today.  Fanisi first invested in Haltons in 2013, spending $3 million for an undisclosed stake.
Sectors & Strategies...
Strategies - Private Equity
KKR to invest $100 million in Africa over coming year  // africacapitaldigest.com
KKR looks set to become the latest global private equity firm to set up shop on the African continent, basing its operations in Nigeria. Reuters reports that the US-headquartered group is looking to invest $100 million in Africa over the next 12 months, focusing primarily on the food and agriculture sectors as well as on energy and infrastructure projects. 
Strategies - Private Equity
Tiso Blackstar on hunt for media assets  // bdlive.co.za
Tiso Blackstar, the investment company constituted by the merger between Kagiso Tisa Holdings and Blackstar Capital, will make bolt-on acquisitions to its media group if they are earnings enhancing and make strategic sense. Tiso Blackstar's s media assets are held under Times Media Group, which was de-listed in May following the company's buyout of TMG's minority shareholders.
Trends & Perspectives...
Trends - Private Equity
U.S. Pension Funds looks for more African private equity exposure  // ft.com
In the search for higher yield, the Financial Times reports that many pension funds in the US are looking to increase their exposure to Africa in a bid to tap into the higher growth rates offered by the continent's economies as well as the sectors benefiting from the growth in the region's nascent middle class.
Trends - Credit
Africa's Sovereign debt check-up  // capitalmarketsinafrica.com
In a week when Tidjane Thiam, the CEO of Credit Suisse, spoke of the "madness" for African nations to rely on foreign currency loans to fund vital infrastructure projects, Capital Markets in Africa has published a useful summary of the state of play in Africa's Sovereign Eurobond market. 
Trends - Hedge Funds
South Africa's Hedge Fund Industry grows by 15.8%  // finalternatives.com
Assets under management by South Africa's hedge fund industry expanded by 15.8% over the 12 months to June 30, 2015 according to Novare's 2015 South African Hedge Fund Survey, now in its twelfth year. The growth in assets was driven significantly by fund performance which contributed almost 50% of the annual gain.
Perspective - Impact Investing
Venture capital funding makes a return to Egypt  // disruptafrica.com
After several years of political turmoil, Egypt's start-ups are once more attracting VC funding. As stability started to set in during 2014, both regional and international investor interest rose and a number of deals are closing.
Perspective - Impact Investing
Frontier Capital delivers both social and financial returns  // disruptafrica.com
In a report from Omidyar Network, so-called frontier capital or early-stage emerging market risk capital, can be an effective tool at delivering both positive investor returns and social impact. The report outlines three strategies for ventures capital investors and other early-stage investors who want to align their investments with their social values.
Companies, People & Profiles...
People News 
Five new directors appointed to SAVCA's board  // africacapitaldigest.com  
Following its AGM which was held last Wednesday, the South African Venture Capital and Private Equity Association announced the appointment of five new directors to fill the vacancies on its Board.  Craig Beney of Convergence Partners, Craig Dreyer of Ethos Private Equity, Llundile Mdluli of Metier, Samatha Pokroy of Sanari Capital and Lelo Rantloane of Ata Capital were all appointed to the 13-member board with immediate effect.
Current Job Postings...
Highlighted Jobs...             
Managing Director, Off-Grid Energy Fund at Acumen 
Based in Nairobi, Kenya
Private Equity Analyst at Coast2Coast Investments 
Based in Cape Town, South Africa
Senior Manager, Corporate Finance at Deloitte 
Based in Johannesburg, South Africa
Vice President for Africa-focused private equity firm 
Based in London, UK
Principal, Investment Facilitation at CrossBoundary 
Based in Bamako, Mali
Associate, Investment Facilitation at CrossB oundary 
Based in Bamako, Mali
Energy Investment Associate at CrossBoundary 
Based in Nairobi, Kenya
New to AfCD this week...
Investment Director, Infrastructure at Sustainable Asset Manager 
Based in Nairobi, Kenya
Private Equity Analyst, Africa at Swicorp
Based in Johannesburg, South Africa
Associate for Law firm's Infrastructure and Energy practice 
Based in London, United Kingdom
Analyst for Private Equity firm 
Based in Cape Town, South Africa
Upcoming Conferences...
Highlighted Event...             
African Finance & Investment Forum 2015

Cape Town, November 24th to November 26th, 2015 

Read more...

Africa Infrastructure and Power Forum 

Beijing, October 15th to October 16th, 2015 

Read more...

Private Equity in Africa 2015 

London, October 28th, 2015 

Read more...

Powering Africa: the Finance Options 

Cape Town, November 5th to November 6th, 2015 

Read more...

Agrique Africa Investment Summit 

Accra, November 17th to November 18th, 2015 

Read more...

13th Annual African Capital Markets Conference

Cape Town, November 26th to November 27th, 2015 

Read more...

TMT Finance & Investment World 2015 

London, December 1st, 2015 

Read more...

The Global African Investment Summit 

London, December 1st to December 2nd, 2015 

Read more...

SuperReturn Africa 
Accra, December 1st to December 3rd, 2015 
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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