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Weekly Wrap, October 12th, 2015; KKR, Ascent Capital, Adlevo and others make private capital news last week

Image Credit: Paga

Last week in brief…October 12th, 2015 

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 theNorwegian 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’sBusiness 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.

As always, you can review these and other stories by clicking through to this week’s complete issue of Africa Capital Digest.

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