The 5 most popular stories on Africa Private Equity News this week
Here are summaries of the five most widely read stories this week on Africa Private Equity News.
1. Cathay AfricInvest Innovation Fund backs health technology company
54gene, the health technology company advancing African genomics research for improved global health outcomes, has secured $25 million in a series B round, led by Cathay AfricInvest Innovation Fund. The round also included participation from Adjuvant Capital, KdT Ventures, Plexo Capital, Endeavor Capital, Ingressive Capital and others. This round brings the company’s total investment to date to more than $45 million since being founded in 2019.
The new capital raised will be deployed to expand 54gene’s capabilities in sequencing, target identification and validation, and precision medicine clinical trials enabling drug discovery in Africa for both Africans and the global population. The new capital will also enable the company to begin its expansion across the African continent.
2. CDC backs African private credit with $60m commitment
CDC Group, the UK’s development finance institution (DFI) and impact investor, has made a $60 million commitment under its African Private Credit Fund Strategy, which aims to address a significant credit market dislocation and mid-market financing gap, a situation intensified by the Covid-19 crisis.
CDC’s latest commitment covers two investments: a $30 million investment in Vantage Mezzanine Fund IV which is managed by Vantage Capital, an established pan-African fund manager; and a $30 million cornerstone investment in BluePeak Private Capital Fund I, BluePeak’s maiden fund. These commitments will enable the fund managers to increase credit supply to mid-market African companies by providing countercyclical mezzanine funding that is bespoke and meets the market need.
3. ARM-Harith launches new West Africa fund
ARM-Harith Infrastructure Investments Limited, a Mauritius-regulated infrastructure fund manager and parent company of ARM-Harith Infrastructure Investment Limited Nigeria, is to launch the ARM-Harith Cities and Climate Transition Fund (The ACT Fund), a pillar of ARM-Harith’s sustainable infrastructure investment platform anchored on climate action.
The ACT Fund is part of ARM-Harith’s broader climate finance platform and will invest in urban climate infrastructure solutions with an initial focus on renewable energy, urban mobility, water, and waste. This $250 million-target fund is being designed in collaboration with the Global Innovation Lab for Climate Finance, a public-private partnership initiative funded by the Dutch, German, Swedish, and UK governments, as well as the Rockefeller Foundation. The platform will enable ARM-Harith to leverage on its relationships with regional pension funds and international DFIs to mobilise international capital and domestic pension savings into infrastructure which supports a low-carbon future.
4. Africa Capitalworks invests in Nigerian engineering services company
Africa Capitalworks (ACW), a sub-Saharan Africa-focused private equity company, has announced a significant equity investment in Dorman Long Engineering Limited (DLE) of Nigeria. DLE provides high value engineering services, fabrication, asset management and galvanising services to a range of international and domestic customers. DLE operates three manufacturing facilities in the Lagos area, one at its head office at Idi-Oro, the galvanising plant in Agege and the waterfront facility at Navy Dockyard. The company employs over 400 people.
5. South Africa: Edge Growth in healthtech deal
South African healthtech company Aviro Health announced the successful closing of a pre-series A funding round from the ASISA ESD Fund (managed by Edge Growth), Tuksnovation, and TIA. The funding will be used to improve and expand Aviro Pocket Clinic, a digital counselling service made available through health providers in the public and private sector that empowers patients with accessible and engaging counselling and linkage to services via mobile phones or devices in facilities.
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