Last week in brief…May 11th, 2015
The volume and value of Private Equity deal activity in Africa last week was light on both counts. There were a couple of transactions of note…in its second investment in Zimbabwe in the past 12 months, Spear Capital acquired a 27% stake in Dendairy in a combined debt/equity deal valued at $6 million. Dendairy is Zimbabwe’s second largest dairy producer, and has recently expanded into theneighboring Mozambican and Zambian markets. And, in an undisclosed deal, Fanisi Capital announced that it had acquired a significant minority stake in Live Ad, the Kenyan outdoor advertising firm, marking the private equity investor’s first investment in the outdoor advertising space. The $50 million fund targets opportunities in a number of sectors, including Healthcare, Agribusiness, Education, Retail and Consumer, investing in profitable firms with a clear expansion plans.
Meanwhile, with a number of investable projects in its pipeline, Joule Africa has agreed a framework for a strategic investment partnership with African Infrastructure Investment Managers. The agreement gives the $1.2 billion infrastructure equity investor the opportunity to invest in the power projects being developed by the renewable energy power developer.
Hot on the heels of the announcement last week that the New York State Common Retirement Fund is planning to allocate as much as 3% of the $180 billion in assets under management to opportunities in Africa over the next 5 years, private equity investors African Capital Alliance (ACA) landed $85 million from the pension fund for its fourth private equity fund. The capital commitment represents the pension fund’s first investment in a fund managed by ACA.
A flurry of interesting survey reports were published last week. Deloitte published its annual African Private Equity Confidence Survey, including data from East and West Africa for the first time this year. It provides a useful snapshot of fundraising, transaction and exit activity and trends on the continent. And in the Emerging Markets Private Equity Association’s 2015 Limited Partner Survey, sub-Saharan Africa is identified by most respondents as being the region where the most plan to begin or expand investing. Financials, Healthcare and Consumer Goods top the list of sub-Saharan investment sectors that LPs are looking for exposure to. The region is still perceived as being the riskiest private capital destination.
Read more on these and other stories by clicking through to the complete issue of this week’s Africa Capital Digest.