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Weekly Wrap, June 8th, 2015; ECP, GEMCORP, IFC and more make private capital news

Image Credit: Business in South Africa

Last week in brief…June 8th, 2015

Actual deals were thin on the ground in Africa’s private equity, venture capital and infrastructure sectors last week. There were a couple of smaller transactions – GEMCORP-backed consumer and SME lender afb with $20 million, while the IFC injected $20 million in equity into Agrivision Africa – but that was it. Most of the news that caught our eye was in the fundraising realm, both planned and actual.

Of these, a couple of were significant. Emerging Capital Partners, one of the most experienced private equity investors in Africa, announced that it is looking to raise an additional $750 million to invest in targets on the continent, while Standard Chartered‘s former Head of EMEA and Latin America Viswanathan Chankhar confirmed stories from early April that he is planning to raise between $750 million to $1 billion to invest in companies in Africa, South and South East Asia and the Middle East. He’s looking to provide growth capital to emerging markets firms looking to break into other emerging markets.

The IFC was party to another investment funds story when it announced that it is teaming up with Chinese multinational construction and engineering firm CITIC to launch a $300 million investment platform that will focus on the development of affordable housing in sub-Saharan Africa. The strategy of the new venture, CITICC Africa Holding, is to partner with local developers and provide long-term capital for the development of 30,000 units over the next 5 years.

Choppies, which counts Standard Chartered Private Equity among its backers, was in the news again last week, this time for an acquisition. Having listed on the Johannesburg Stock Exchange earlier this year, the Botswanan food retailer entered into an agreement to acquire 10 retail locations in Kenya from Ukwala Supermarkets for $9 million. This helps it get inch closer to its stated goal of having 200 sites in 6 African countries by the end of 2016. In other portfolio company news, Mitchell Elegbe, the Founder & CEO of Nigerian payment processor Interswitch tells Bloomberg that the company is looking at the possibility of holding an initial public offering in Lagos and London in 2016. An IPO or trade sale would provide Helios Investment Partners and Adlevo Capital with an opportunity to exit their stakes in the company.

You can read more on these and other stories from last week by clicking through to week’s full issue of Africa Capital Digest.

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