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.
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 addition, Northstar has acquired a majority stake in Fast Credit, a Nigerian payroll lender, which it plans to franchise in Ghana and the broader West African region.
Welcoming the deal, Akintoye Akindele, one of Synergy’s Partners said “With this investment, we are confident that Northstar can become the personal finance institution of choice in the region. The complement of businesses and products offers a unique value proposition for Northstar’s customers that would be difficult to replicate.”
Synergy Private Equity Fund held its final close in September 2015, exceeding its $100 million hard cap with commitments from a range of investors which included four of the most active development finance institutions in Africa, seven commercial investors and one sovereign wealth fund.
Udo Udoma & Belo Osagie and Banwo & Ighodalo provided legal advisory services for the deal. PwC undertook the financial and tax due diligence requirements for the transaction.