Marlon Chigwende and Kayode Akinola, both Africa heads of leading global private equity firms, are teaming up to launch Arkana Partners to invest in mid-cap investment opportunities on the continent. The new firm will look for opportunities up to $100 million in size, and, while most of the emphasis will be on private equity transactions, the firm will also review deals in other asset classes.
Reuters reports that Kayode Akinola is leaving KKR to join Marlon Chigwende, who left Carlyle in September 2016 as many of Africa’s typical private equity opportunities are too small in size for the larger global investment firms. While Arkana Partners will look for businesses which have the capacity to absorb $100 million in capital, its main focus will be on those companies looking for between $20 million to $60 million of fresh equity.
“You need to bring your entire tool bag to the market,” Akinola told Reuters. “(In Africa) you can’t just say you’re only going to do buy-outs or just greenfield.”
No details on the sources of capital, the structure of investment vehicles or how much Arkana Partners is looking to raise have yet been reported .