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. Obama joins Helios-backed NBA Africa as strategic partner
In May, Helios Fairfax Partners led the formation investment round in a newly formed entity called NBA Africa, in partnership with the National Basketball Association (the NBA). The NBA announced recently that former US President Barack Obama is joining NBA Africa as a strategic partner.
Obama will help advance the league’s social responsibility efforts across the continent, including programmes and partnerships that support greater gender equality and economic inclusion. In this capacity, Obama will have a minority equity stake in the new venture, which over time he intends to use to fund Obama Foundation youth and leadership programmes across Africa.
NBA Africa conducts the league’s business in Africa, including the Basketball Africa League (BAL), which held its inaugural season in May featuring 12 of the top club teams from 12 African countries.
2. Moroccan-based PE firm exits to Helios
CDG Invest PME (CIP), a Morocco-based private equity firm previously known as CDG Capital Private Equity, and Techniques Science-Santé (T2S), IM Alliance, Cyclopharma and Binarios (together, the company or the group) have announced the signing of an agreement for the sale of a majority stake in the largest and most diversified group of medtech companies in Morocco to funds managed by Helios Investment Partners.
Founded in 1992 by M. Abderraouf Sordo as well as other managers, the group has grown to become the leading medical equipment distributor and maintenance provider in Francophone Africa, generating revenues of c.€100 million in 2020. Through long-standing distribution agreements with leading original equipment manufacturers (OEMs), the group provides a diversified base of customers with access to high-end medtech equipment.
3. ECP, A.P. Moller Capital, DEG and IFU join forces to invest in Eranove
Emerging Capital Partners (ECP), A.P. Moller Capital, DEG and Danish development finance institution IFU have announced the creation of a new company called ECP Power & Water Holding that will invest in the industrial group Eranove.
ECP Power & Water Holding becomes the reference shareholder of the pan-African industrial group Eranove, a major player in the management of public services and the production of electricity and drinking water, in which ECP has been the largest shareholder since 2008. This will help place the Eranove Group on a long-term path to increase its supply of electricity and clean water to millions of people in Africa. The new company will put a priority on clean energy investments.
4. TPG announces $5.4bn first close of TPG Rise Climate Fund
TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform TPG Rise, announced the first close of $5.4 billion in subscriptions to its inaugural fund. With the fund’s first close, TPG Rise Climate is bringing together a unique blend of capital from some of the world’s largest institutional investors and over 20 companies to invest in the entrepreneurs and businesses building climate solutions around the world. TPG Rise Climate has set a hard cap of $7 billion in total capital commitments and expects to hold a final close in the fourth quarter of 2021.
TPG Rise Climate was launched in early 2021. TPG founding partner and executive chairman Jim Coulter is managing partner of TPG Rise Climate. Former U.S. treasury secretary Hank Paulson serves as executive chairman of TPG Rise Climate. The fund brings a growth equity approach as it seeks to work collaboratively with the companies, entrepreneurs, and scientists who have pioneered and developed innovative climate solutions over the past decade. By delivering impact-driven capital and business building capabilities at scale, TPG Rise Climate is designed to grow the wide range of commercially viable climate technologies that have been incubated by the research community, early-stage investors, and other climate innovation accelerators.
5. Carlyle and Ethos to exit investment in logistics company
South African logistics company Imperial has entered into an agreement to purchase 100% of the issued share capital of the J&J Group for an enterprise value of $300 million (c.R4.4 billion). Funds managed by Carlyle and Ethos Private Equity are controlling shareholders of the J&J Group.
The J&J Group offers end-to-end logistics solutions along the Beira and North-South corridor, specialising in the transport of break-bulk, containerised, project, fuel and out-of-gauge cargo between Mozambique, Zimbabwe, Zambia, South Africa, Malawi and the DRC.
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