Atta Africa Financial update 03.10.2017

Executive summary: A growth engine: trends and outcomes of private equity in Africa.

Between 2010 and 2016, general partners invested about US$25.6 billion across sectors that ranged from consumer goods to water and sanitation in Africa (reads a report by Baker McKenzie, et. al.).

The number of active general partners on the continent has grown from a dozen or so in 1990, to at least 140 general partners at present - their approach to investment in Africa is, in several ways, distinct from how the asset class functions in other parts of the world.

For example: private equity fundraising and deal execution have a much longer lead time on the continent; deal sizes are usually smaller; the average holding periods extend over eight-plus years; and the exit options are heavily weighted towards trade sales.

Private equity deals in Africa are growing from a low base equivalent to 0.18% of Africa’s gross domestic product in 2016.

Every 0.01% increase will mean US$200 million more invested and may reach US$1.1 billion over the next five years.

Not easy work, if you can get it.

Fact: Two conductors have died while conducting the second act of Wagner’s opera Tristan und Isolde - they collapsed from heart attacks at exactly the same point in the music due to its technical demands

 

AfricInvest to acquire 14% of Britam Holdings

 
  • AfricInvest has announced it will invest US$55 million to acquire an approximate 14.3% stake in Britam Holdings, the Nairobi Stock Exchange-listed insurer
  • The transaction will be made through one of the private equity firm’s newer funds, AfricInvest Fund III
  • The deal is subject to both regulatory and shareholder approval

 

 

AFIG Funds has finalised a deal with First Atlantic Bank

 
  • AFIG Fund II will capitalise First Atlantic Bank for the purpose of growth and to sure up the bank’s capital requirements
  • According to AFIG’s website, the fund has US$250 million to invest in businesses that exhibit the potential to become regional winners in West, Central and East Africa