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. Amethis backs insurance company
Diot-Siaci Group, a European corporate insurance consulting and brokerage firm, has partnered with private equity firm Amethis to acquire a stake in Morocco’s ASK Gras Savoye Group.
ASK Gras Savoye Group operates in 12 African countries, employing over 550 experts in corporate risks and personal insurance. The group manages €300 million in premiums across property and casualty, health, and retirement risks.
2. Apis fund in line for IFC investment
The IFC has disclosed a proposed investment of up to $60 million into the Apis Growth Markets Fund III (AGF III), a $500 million private equity vehicle making growth-stage investments in companies operating at the intersection of financial services and technology in South Asia, Southeast Asia and Africa. The fund is established and registered as a special limited partnership in Luxembourg.
AGF III will seek to take significant minority stakes, or in some cases majority stakes, via $60-70 million tickets (including co-investments), in companies that typically have strong performance, market positioning, growth prospects, potential for expansion, and high-quality management backed by shareholders that are aligned to the fund’s objectives. The fund will seek to make 10-15 investments.
3. Kleoss exits South Africa’s Real Foods
Kleoss Fund I announced its full exit from South African health and wellness food group, Real Foods.
Kleoss Fund I partially exited Real Foods in March 2022 when Real Foods sold the Kauai and Nu Health Group of quick service restaurants (QSRs) to the Virgin Active Group. A full exit has now been realised through a recapitalisation of Real Foods, by Rand Merchant Bank (RMB), Network Investment Partners, and certain other existing and new family offices and private investors.
Real Foods was created in 2013 to consolidate health-focused food producers and retailers in South Africa. Kleoss Fund I was an early investor in Real Foods when it owned only Kauai and the Nu Health group with a total of approximately 150 QSRs. With Kleoss’ involvement, Real Foods was positioned as a new and improved brand concept for high growth in South Africa and internationally. Kauai successfully expanded into Europe and Asia in addition to distributing Kauai branded products to retail chain stores in South Africa. At the time of Kleoss Fund I’s exit, Real Foods had more than 200 QSRs, a 30% growth since Kleoss Fund I’s investment was made.
4. Finnfund invests in clean energy PE vehicle
Finnfund, the Finnish development financier and impact investor, has announced a $20 million commitment to the Evolution III Fund, managed by Inspired Evolution. The pan-African equity fund aims to foster the availability and accessibility of clean energy and increase energy efficiency.
Finnfund’s commitment is part of the first closing of the fund. Evolution III closed at $199.4 million in conditional commitments from seven international investors, including several development finance institutions, allowing a further 12-18 months window to reach its target close of $400 million in capital commitments. The fund will target around 10 to 15 investments over an investment period of five years.
5. South Africa: Secha Capital in agritech deal
FarmTrace, a South African-based agritech company, has received an equity investment from Secha Capital and Hassium Capital. The company offers a cloud-based farm management platform that integrates all production activities, enabling farmers to monitor and control their operations from anywhere in the world.
FarmTrace intends to use the investment to accelerate its growth by hiring additional software developers, engineers, project managers, and implementation consultants. This expansion aims to support sustainable growth in the local agribusiness sector, increasing exports, employment, and reducing food waste.