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. CDC invests in Uhuru Growth Fund I’s $113m first close
Uhuru Investment Partners, a middle-market private equity firm based out of Lagos and Abidjan, has announced the first close of Uhuru Growth Fund I (UGF) at $113 million, with capital support from CDC Group, the UK’s development finance institution (DFI), along with other DFI partners, commercial and impact investors. UGF’s capital will support enterprises that boost job creation, increase access to goods and services in consumer staples, and enhance access to healthcare and fintech sectors.
With a target final close of $200 million, the first-generation fund will invest across the West African region including Nigeria, Ghana, Côte d’Ivoire and other Francophone markets. In addition to CDC, UGF is backed by commercial investors AfricaGrow and Kuramo Capital as well as DFIs including European Investment Bank, DEG, SIFEM and Finnfund.
2. Cepheus Capital invests in Ethiopian textile company
Cepheus Growth Capital Partners has announced an investment into JP Textile Holding Company Limited, the majority shareholder in JP Textile, Ethiopia’s leading manufacturer of advanced fabrics and a key supplier within Ethiopia’s growing garment industry. With this investment, Cepheus Capital will hold a significant minority ownership stake and provide strategic, managerial, and operational support to JP Textile.
JP Textile, based in the Hawassa Industrial Park, is expanding its production capacity to meet growing demand for its fabrics in Ethiopia and internationally. The investment by Cepheus Capital will support the company’s expansion plans and also facilitate operational enhancements in areas such as environmental, social, and governance standards.
3. IFC considers investment in TLcom fund
The IFC is considering an equity investment of up to $10 million in the TIDE II fund, an Africa-focused venture capital fund investing in seed to series A tech and tech-enabled companies mainly in East and West Africa.
The fund’s sectoral focus will mainly be in the fintech, e-logistics, e-supply chain and healthtech space.
TIDE II is managed by TLcom Holdings, a United Kingdom-based entity wholly owned by TLcom Capital LLP.
4. Vumela Fund invests in South African kitchen equipment supplier
The Vumela Fund, established by FNB Business and Edge Growth, has announced a new investment in Kombo King, a South African kitchen equipment supplier focusing on the fried food niche market.
The unique technology has created a strong competitive advantage. Kombo King fryers offer retail stores savings in electricity usage, oil usage, kitchen space and the opportunity to increase spend per customer from faster service and increased menu offerings. The Kombo King fryers are a proudly South African manufactured product which has an opportunity to increase the quality of food provided in the value market.
The Vumela Fund, managed by Edge Growth, has taken the opportunity to support an acquisition that will boost capacity and create new partnerships, resulting in sustained long-term growth.
5. IFC discloses investment in Vantage mezzanine fund
The IFC has disclosed a proposed equity investment of up to $25 million, not to exceed 20% of total capital committed, in the fund known as Vantage Mezzanine IV Pan African Sub-Fund Partnership, a fund, which, together with two additional distinct limited partnerships, has a target size of $350 million.
The Pan African Sub-Fund will be managed by Vantage Capital and aims to boost the growth of Africa’s nascent mezzanine finance industry by providing much-needed capital to African mid-sized companies, many of which are or have been negatively impacted by the Covid-19 pandemic. The project will support high-growth, mid-market companies, some of which will have a portion of their revenues in hard currency.
The Vantage Capital Group is an Africa-focused fund manager founded in 2001. To date, the group has raised six funds with aggregate commitments of more than $1 billion. Since 2006, Vantage Capital’s mezzanine division has made 31 investments across three funds into 11 African countries, making it the largest and most experienced independent mezzanine funder on the continent.
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