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. LCP Fund II makes inaugural investment in Egyptian loyalty solutions provider
LCP Fund II, managed by Egypt focused private equity firm Lorax Capital Partners, has announced the acquisition of a significant minority stake in DSQ Group, one of the leading end-to-end loyalty and rewards solutions providers in the CEMEA region serving over 45 local and international clients and with a reach of more than 100 million customers.
LCP’s investment mainly consisted of a significant capital increase to support the scaling of new business lines and to further expand the company’s geographical footprint both locally and internationally. The transaction also included the acquisition of Ezdehar Egypt Mid-Cap Fund’s minority stake. Furthermore, Algebra Ventures, one of Egypt’s leading VC firms and an existing shareholder in DSQ Group, increased its investment as part of this transaction.
2. TLG Capital exits Uganda investment at over 30% IRR
TLG Capital announced it is exiting its investment in BAJ Stations Uganda, after nearly four years, at 30+% IRR in USD. TLG invested in BAJ Stations through its Credit Opportunities Fund (COF). This is COF’s eighth exit and its third in Uganda.
TLG first invested in BAJ in 2017 when the business had five operating fuel stations. Through TLG’s investment, strategic guidance and support of BAJ’s management team, led by Norman Batuma, the business transformed into a significant fuel retailer in Uganda with over 40 fuel stations spanning the length and breadth of Uganda.
3. EXEO Capital invests in Kenyan ice cream company
EXEO Capital, a pan-African private equity investment manager, announced the investment by its food and agribusiness fund, Agri-Vie Fund II, in Glacier Products Limited – the producers of Kenyan ice-cream and chocolate brand Dairyland. The investment is subject to receipt of regulatory approvals and is expected to be completed in the coming weeks.
Glacier, incorporated in 1979, has experienced strong growth over the years and is a common household brand, with its reach spanning across Kenya, Tanzania, Uganda, South Sudan, Ethiopia and Rwanda.
4. Kenya: Energy Access Ventures, Acumen, others invest $14m in SunCulture
SunCulture, a Kenya-based technology company and leader in solar power systems, water pumps, and irrigation systems for smallholder farmers, closed a Series A investment round of $14 million. Energy Access Ventures (EAV) led the round and was joined by Électricité de France (EDF), Acumen Capital Partners (ACP), and Dream Project Incubators (DPI). EAV is furthering its investment after having participated in SunCulture’s 2017 seed round, while EDF has supported SunCulture since 2018 both as an investor and as a business development partner, primarily in West Africa where EDF is a leading player in off-grid solar systems.
SunCulture offers solutions tailored to smallholder farmers, combining market-leading technology with pay-as-you-grow (PAYG) financing and value-add services. As the first company to commercialise solar-powered irrigation in Africa, SunCulture currently reaches customers across Kenya, Ethiopia, Uganda, Zambia, Senegal, Togo, and Côte d’Ivoire. With these funds, SunCulture is in a position to accelerate direct sales in Kenya, continue to expand internationally, and fund existing product improvements and new product innovation.
5. DEG invests $10m in African fund
German development financier DEG has signed a $10 million investment in African Infrastructure Investment Fund 3 (AIIF3), an infrastructure private equity fund managed by African Infrastructure Investment Managers (AIIM).
AIIM actively manages investments across Africa and has assets under management of $1.9. billion with a track record extending across six African infrastructure funds.
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