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. Kholo Capital Mezzanine Debt Fund I achieves first close
Kholo Capital Mezzanine Debt Fund I has secured R870 million (about $47.7 million) in commitments for investments in mid-market companies with operations in Southern Africa (South Africa, Botswana, Namibia, Lesotho and Swaziland). These first close commitments have been secured from institutional investors including the 27four Black Business Growth Fund, RisCura (on behalf of various clients), the Mineworkers Provident Fund, the National Fund for Municipal Workers and Thuso Partners, and represent a significant milestone in the fund’s ambitions to reach a target final close of R1.5 billion (about $82.3 million).
Kholo Capital will focus on investing in companies generating a minimum of R25 million (about $1.4 million) EBITDA across various growth sectors of the economy, providing access to capital within a preferred range of R50-200 million (about $2.7-$11 million) per investment.
2. DEG commits €15m to African tech fund
German development finance institution DEG has committed €15 million to the Partech Africa Fund II (PAF II), a fund managed by Partech Partners. The venture capital fund will concentrate on investments in fast-growing technology companies all over Africa, including Nigeria, Egypt, South Africa, Kenya and Senegal.
Other investors in the PAF II fund include anchor investor KfW, the European Investment Bank, the IFC and European development finance institutions FMO, BII and Proparco.
3. South Africa: Third Way, Mahlako and Mergence in solar energy deal
South Africa’s Aventro has received investment from Third Way Investment Partners, Mahlako Energy Fund and Mergence Investment Managers to increase its shares in the 100MW Redstone Concentrated Solar Power Project.
The project, located in the Northern Cape, aims to generate clean energy for up to 200,000 homes and will have low electrical tariffs thanks to recent improvements in solar technologies.
4. Spear Capital in Zimbabwe deal
Private equity firm Spear Capital has concluded an investment deal with Greenwave Milling, a manufacturer and distributor of high-value basic commodities throughout Zimbabwe. The transaction was made via one of Spear Capital’s subsidiaries, Superior Food Group Africa Ltd.
Previously part of the Metro Group, which is already a Spear Capital investee, Greenwave Milling is now a standalone production unit for the group. It manufactures, packages, and distributes a number of basic commodities including roller meal, refined meal, rice, cooking oil, flour, beans, salt, sugar, kapenta (a regional type of dried sardine), soya chunks, and other household essentials.
Under the terms of the deal, Spear Capital via its subsidiary Superior Foods, has provided Greenwave Milling with a substantial debt facility. The funding will be used to purchase raw materials for milling and down packing and to ensure that it is able to meet growing demand for the GreenWave range of products.
5. South African car subscription business raises $100m
Planet42, the car subscription startup addressing transport inequality by putting cars in the hands of people who cannot access traditional bank credit, has raised $100 million in combined equity and debt funding. The $15 million equity round was co-led by Naspers and ARS Holdings, with participation from existing and new shareholders, including Rivonia Road Capital, which also provided a $75 million credit facility. Private investors contributed a further $10 million in debt financing. The funds will enable Planet42 to rapidly scale its business and meet its ambition of providing 1 million cars worldwide.
In 2021, Planet42 raised $6 million in equity and $24 million in debt financing. Since then, the company has nearly quadrupled the size of its business and purchased well over 5,000 cars in South Africa in the last 12 months alone.