Atta Financial Update

Executive summary:East Africa attracting interest

The contemplated sale of east Africa’s largest chain of coffee shops is being regarded as a key indicator of the interest of international private equity groups’ interest in the region. TPG and Carlyle, two of the world’s largest private equity groups, have in the past few months expressed an interest in purchasing Java House, with the deal expected to value the coffee chain at as much as US$100m.

Java has more than 50 outlets in Kenya, Uganda and Rwanda, as well as pizza restaurants and frozen yogurt shops. It is currently controlled by Emerging Capital Partners, a private equity group that has a 90 per cent stake.

South Africa has traditionally been the leader in large private equity transactions on the continent however east Africa has been growing quickly over the last couple of years; quicker than west Africa.

The most attractive sectors for private equity groups tend to be consumer industries, real estate, financial services and energy as well as infrastructure, where private funding can combined with finance from development institutions such as the UK’s CDC group. The expectation is that the region’s momentum will continue, although a degree of uncertainty will remain until the Trump administration’s policies towards Africa, on both trade and aid, become clear.

Fact: You cannot snore and dream at the same time.

Catalyst Principal Partners hit first close for new fund

 
  • Nairobi-based fund manager, Catalyst Principal Partners, held a first close for its second fund, touching US$103 million in commitments
  • Funding came from a mix of Africa-focused fund-of-funds, development finance institutions and regional family offices
  • All limited partners had been investors in the fund’s US$123 million predecessor fund, with a number of them reportedly increasing the size of their commitment to the new fund
  • The 10-year fund will pursue a similar strategy to that executed by Catalyst Fund I, making mid-market growth capital investments within fast growth consumer demand driven sectors across Eastern Africa

Long4Life to list on the JSE

 
  • Long4Life, an investment firm with an expected capitalisation of R2 billion (US$150 million), will list on the Johannesburg Stock Exchange shortly
  • The investment vehicle aims to deliver annualized growth in excess of 15% over the medium-to-long term and will avoid banking, mining and resources opportunities

Momentum Africa Real Estate Fund reaches US$170 million

 
  • The Momentum Real Estate Fund is a joint venture between sister companies Momentum Global Investment Management in London and Eris Property Group in South Africa
  • Momentum and Eris are both subsidiaries of Johannesburg-listed MMI Holdings, Africa’s third largest life insurer
  • The fund will seek to achieve an 18% net IRR for its investors by investing in a portfolio of commercial real estate developments (office blocks, shopping malls and warehouses) in sub-Sahara Africa outside of South Africa