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Weekly Wrap, June 6th, 2016; Actis, MCB Capital, Convergence and more make private capital news last week

Last week in brief…June 6th, 2016

Beating its $400 million target by 25%, private equity firm Actis held the final close for its third Africa Real Estate private equity fund at $500 million last week, garnering commitments from a broad range of local and international pension funds, sovereign wealth funds, development finance institutions and endowments.  The new fund will target prime retail, office and industrial development in the capital cities of between seven and eight sub-Saharan African countries and will be invested by a team led by David Morley and other investment professionals based in London, Johannesburg, Nairobi and Lagos.

In other fund raising news, a couple of DFIs published statements that each are mulling separate $10 million commitments to earlier stage funds.  The IFC’s Board of Directors is set to meet in the middle of July to consider making a $10 million commitment to Algebra Ventures Fund which will target technology and technology-enabled start-ups in Egypt and the broader Middle East and North African region. The new closed-end venture fund is looking to raise a total of $50 million. Meanwhile, the European Investment Bank is considering making a $10 million commitment to TLcom’s TIDE Fund, a planned $100 million venture capital fund, which will invest in entrepreneurs and enterprises that are leveraging technology and innovation to serve the sub-Saharan African market.

In deal news, MCB Equity Fund, Mauritius-based MCB Capital Markets’ $100 million captive private equity fund, has sold Speedy, an automotive fast-fit services company which operates 480 repair centers across France to Bridgestone EMEA, the regional subsidiary of tyre manufacturing giant Bridgestone.  MCB Equity Fund originally invested in Speedy in 2011 in a debt/equity LBO deal. Since then Speedy has expanded its network of repair centers, built a fleet business and expanded its customer base to sell 1.2 million tyres in 2015, capturing a 4.5% share of the French market. Terms of the deal, which gives MCB a full exit, were not disclosed.

According to The Herald, Brainworks Capital, the Zimbabwean private equity and advisory firm, is reportedly acquiring mobile wallet company, Nettcash in a two-phase, $1.3 million deal. Having received regulatory approval to buy the 49% stake owned by a local business consortium, the firm is now waiting for approvals to acquire U.S. company Mozido’s 51% stake.

Convergence Partners, the private equity firm focused on opportunities in Africa’s telecoms, media and technology sector, is backing South African start-up Snapt with $1 million. The capital injection will help the technology company, which opened an office in the USA 12 months ago, accelerate its plans to become a “major player the $6.5 billion US market”. No additional terms of the deal were disclosed.

In trend news, the MENA Private Equity Association published its tenth annual review, reporting that 2015 was a year of consolidation and growth for the private equity and venture capital asset class across the region. While overall investment volumes increased significantly, values dipped slightly. Venture investments, however, had a bumper year, tripling in volume from the same period in the prior year.

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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