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. TPG fund to invest $200m in Airtel Africa’s mobile money business
Airtel Africa, a provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, announced the signing of an agreement under which The Rise Fund, the global impact investing platform of alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV (AMC BV), a wholly-owned subsidiary of Airtel Africa plc. AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
The transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis. The Rise Fund will hold a minority stake in AMC BV upon completion of the transaction, with Airtel Africa continuing to hold the remaining majority stake. The transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV.
2. Moshe Capital Fund Managers seeking investments in South Africa
South African private equity company Moshe Capital Fund Managers is actively seeking to invest R350 million (about $23.5 million) into diverse companies with a solid presence in their sectors.
The firm has secured a funding commitment from FNB Commercial and has entered into a partnership agreement with RMB Ventures. Both divisions of FirstRand Limited. “Despite economic challenges, there are several opportunities for investment and growth in various sectors such as manufacturing, industrial, mining products or services and secondary agriculture in South Africa. We predominantly invest in established businesses valued at an enterprise value of R200 million (about $13.5 million) or more,” says Mametja Moshe, founder and CEO of Moshe Capital, adding that the calibre of funders makes it possible to increase available funding should a detailed assessment process reveal compelling prospects.
3. Nigeria: Peter Thiel’s Valar Ventures invests in digital-only bank
Kuda Technologies, a full-service, digital-only bank, has announced a $25 million series A funding round led by New York-based venture capital firm Valar Ventures. The investment into Kuda is Valar Ventures’ first foray into Africa, having already backed other well known financial technology firms around the world. The fund, which was founded by Peter Thiel, has previously invested in Germany’s N26, the UK’s Wise and Mexico’s Albo.
The round also includes participation from existing investor Target Global, an international venture capital firm headquartered in Berlin, and several other existing investors. The $25 million funding raise follows on from the $10 million Kuda raised in October 2020, the largest ever seed round to be raised in Africa.
Founded in Nigeria by Babs Ogundeyi and Musty Mustapha in 2019, Kuda has offices in London, Cape Town, and Lagos – where it operates as Kuda Microfinance Bank under license from the Central Bank of Nigeria.
4. IFC mulls investment in Amethis fund
The IFC is proposing an equity investment of up to €12.5 million, capped at 20% of total commitments, in Amethis MENA Fund II, a closed-end private equity fund to be domiciled in Luxembourg.
The fund seeks to make equity investments of between €5-15 million per company in around 15 high-growth small and medium enterprises in the Middle East and North Africa (MENA). The fund will focus on consumer, healthcare, education, business services, manufacturing and technology sectors.
The fund’s target fund size is €150 million.
5. BluePeak Private Capital Fund aims to raise $200m; in line for FMO commitment
The Dutch entrepreneurial development bank, FMO is proposing a $20 million investment in the BluePeak Private Capital Fund, which aims to provide growth capital to small and medium companies in North, West and East Africa and up to 20% in the Levant.
BluePeak targets to raise $200 million in commitments and will be managed by BluePeak Private Capital which is a newly established fund manager with a head-office in Tunisia. The business is owned by a team that has worked together for many years managing similar funds. This is a new relationship for FMO.
BluePeak is a specialist mezzanine fund manager, offering a blend between debt and equity financing.
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