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. Mineworkers Investment Company commits $10m to Knife Capital fund
Mineworkers Investment Company (MIC) has committed $10 million to venture capital firm Knife Capital’s new African series B expansion fund, Knife Fund III. The fund’s aim is to invest behind the aggressive expansion of African innovation-driven companies and fill a critical follow-on funding gap.
Knife Fund III’s target is to raise $50 million in order to be well positioned to directly invest behind the aggressive expansion of South African breakout companies and co-invest with other credible funders in companies across the rest of Africa. The focus will be on scalable business-to-business technology companies that have attractive exit optionality.
The fund consists of two main funding vehicles: a USD-denominated limited partnership in Jersey and a ZAR-denominated limited partnership in South Africa, which will co-invest alongside one another in portfolio companies. MIC is investing in the ZAR-denominated partnership.
2. Creadev, Finnfund in South African education deal
SPARK Schools has announced a series C fundraise led by Creadev, alongside Finnfund and Imaginable Futures to unlock access to high quality, affordable K-12 education across Africa.
The funding will be instrumental in consolidating SPARK’s existing network and expanding primary and secondary schools across Africa to reach 35,000-plus scholars in the next 10 years. The round was led by Creadev, together with the Finnish development finance institution Finnfund and existing SPARK shareholder Imaginable Futures.
3. CrossBoundary and Brown Advisory announce strategic partnership
CrossBoundary Group and Brown Advisory announced the formation of a strategic partnership. CrossBoundary Group is an investment firm serving underserved markets globally and Brown Advisory is one of the largest privately-held U.S. investment management firms, with responsibility for over $100 billion in client assets.
The partnership includes a minority investment by Brown Advisory in CrossBoundary Group, and initiatives for both firms to collaborate on a global basis. The partnership underpins the shared belief of both firms in three major trends: an increasingly interconnected world and the rising importance of global frontier markets; the necessity of incorporating environmental, social, and governance elements into investment decisions; and a shift towards impact principles in the capital allocation philosophies of the next generation of wealth creators.
4. IFC to invest up to $10m in Salt Capital’s SADC fund
The IFC will make an equity investment of up to $10 million (not to exceed 20% of total commitments) in Salt Equity I, managed by Salt Capital Ventures.
Salt, established as a limited partnership registered in Jersey, will invest in SMEs in the SADC region (Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe). Investments will cut across sectors such as food and beverage, supply chain, financial services, healthcare and education.
The fund is seeking to raise $100 million in capital commitments.
5. SunCulture signs $11m syndicated debt facility to expand solar irrigation
SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, received the first disbursement from a new $11 million syndicated debt facility to expand its operations in sub-Saharan Africa.
The new loan is groundbreaking for the ”productive use” solar sector due to its size and its innovative combination of working capital and end-user financing.
SunFunder arranged as well as invested in the facility, leading a group of lenders comprising Triodos Investment Management, Nordic Development Fund, AlphaMundi and the AfDB’s FEI OGEF managed by Lion’s Head.
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