According to reports, Musa Capital‘s Namibian mid-cap fund has completed its acquisition of Swanib Cables, a significant cable distributor in the South West African country. The private equity firm’s acquiring the company from Powertech, a subsidiary of JSE-listed Altron, who originally acquired Swanib for R43 million in 2007. Terms of the sale to Musa Capital Namibia, which was filed with Namibia’s Competition Commission in June, remain undisclosed.
Musa Capital launched the Namibia Mid-Cap Fund September last year. At the time, the fund had already garnered some N$300 million (or almost US$22 million) in commitments from a number of investors including the country’s Government Institutions Pension Fund. Ultimately, the fund is targeting N$450 million (approximately US$33 million) for its final close.
The fund is structured as a Namfisa investment vehicle and targets growth opportunities in Namibian SMEs operating in a number of sectors. These include companies delivering services across the food value chain, those providing retail financial services, healthcare and education solutions as well as light infrastructure opportunities. In addition to providing the fund’s investors with requisite financial returns, each investment will be evaluated on its impact potential for the local economy and its ability to help SME development and transfer skills.
The fund is managed by a team of managers in Namibia who are responsible for deal origination, management and execution to optimize the performance of the fund.