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A selection of African private equity deal, fundraising and exit announcements that came across our desk in October 2020.

Deals

Vantage Capital, Africa’s largest mezzanine fund manager, has made a $28 million equity investment to acquire a significant minority shareholding in the Cliniques Internationales du Maroc Group, a Morocco-based healthcare provider. Vantage’s funding will enable the founding family to part-finance the extension of the existing clinic in Marrakech and the opening of new clinics in Tangier and Casablanca.

Actis, an investor of private capital into global emerging markets, has entered into agreements to acquire a controlling interest in Octotel, a fibre-to-the-home operator in South Africa for an enterprise value of R2.3 billion (about $140 million). At the same time, Actis signed agreements to acquire a non-controlling interest in RSAWEB, an internet service provider in South Africa.

Private equity firm Spear Capital has made an investment in Arkay Plastics, a leading brand name for plastic houseware, furniture, industrial products and packaging in Zambia and Mozambique.

TLG Capital has purchased 49% of Opportunity Bank Uganda Ltd, a tier 1 commercial bank with 23 branches and 22 ATM points across Uganda. The investment was made through TLG’s Credit Opportunities Fund.

Good Nature Agro, a Zambian company working from end-to-end within the specialised legume value chains, closed a series A equity funding round totalling $2.1 million. Goodwell Investments led the round with participation from existing seed investors Global Partnerships and FINCA Ventures.

Climate Fund Managers (CFM) and Eos Capital have announced a partnership between Climate Investor Two (managed by CFM), Kelp Blue and the Namibia Infrastructure Development and Investment Fund, managed by Eos Capital, for the commercial development of the world’s first large-scale kelp farm. Investment of approximately $60 million will be required over a five-year period.

Tugende, a technology-enabled asset finance company operating in Uganda and Kenya, completed a $6.3 million series A investment round, led by Toyota Tsusho investment fund Mobility 54. Other participants in the round were US-based Global Partnerships’ Social Venture Fund, current shareholders including Denali Venture Philanthropy and Segal Family Foundation, and new angel investors.

Fundraising

Axian, a diversified group operating in multiple industries, has invested in the African Development Partners III fund, managed by Development Partners International (DPI). With over $1.6 billion in assets under management, DPI invests in businesses, across the continent, positioned to benefit from the fast-growing emerging middle class.

Secha Capital Partners announced the first close of its second fund at $30 million. Secha Capital Fund II will invest up to R12 million (about $730,000) into established Southern African SMEs for significant minority equity stakes.

Allianz Global Investors’ €200 million AfricaGrow fund of funds, has made its first two investments of around €15 million each to SPE AIF I and the Cathay AfricInvest Innovation Fund (CAIF). SPE AIF I is a fund of SPE Capital Partners, a private equity fund manager based in Tunisia, with a focus on investments in portfolio companies located in North Africa. AfricInvest, also based in Tunisia, is pursuing a pan-African growth strategy through its VC fund, CAIF. AfricaGrow is a public-private cooperation between KfW Entwicklungsbank, Allianz and DEG.

Bpifrance and Proparco have announced the first closing of Averroès Africa, their fourth fund of funds for Africa. With a target size of €100 million, Averroès Africa will invest in African funds dedicated to start-ups and small and medium-sized enterprises. Averroès Africa has a target portfolio of 10 to 12 funds.

IFC is considering an additional equity commitment of up to $15 million in AfricInvest Fund IV, a generalist, closed-end private equity fund domiciled in Mauritius with a target size of $400 million. The fund will be managed by AfricInvest and will invest in mid-market growth capital transactions in Africa.

The European Investment Bank has signed a commitment of $22 million to LCP Fund II, a generalist private equity fund targeting growth capital investments in SMEs and mid-market companies in Egypt. The fund manager, Lorax Capital Partners, will adopt a hands-on value-adding investment strategy and will seek to invest in enterprises with robust growth potential in important economic sectors including education, healthcare, manufacturing and services.

Exits

Crossfin Technology Holdings, one of the first investors in South African-based mobile rewards software company wiGroup, has exited as a shareholder after a successful 12-year partnership. The exit is part of a transaction whereby wiGroup and Yoyo, a UK-based marketing, payments and loyalty company, joined forces to create a global loyalty company under the Yoyo brand.

Comoé Capital, Côte d’Ivoire’s leading impact investment fund and partner of Investisseurs & Partenaires (I&P), has exited its investment in Vallesse Editions, an Ivorian publishing house, after three years. To strengthen and develop its publishing activity, Vallesse obtained a financial and technical contribution through the Education Impact Fund, the first fund dedicated to education in Côte d’Ivoire, managed by Comoé Capital.