International Finance Corporation (IFC)

"Industries in Sub-Saharan Africa

IFC Hits Record Investment, Advisory Volume to Promote Development in Sub-Saharan Africa

IFC committed a record $5.3 billion to new investments and carried out advisory services projects worth $65 million in Sub-Saharan Africa in its most recent fiscal year. IFC supported infrastructure, health, agribusiness and a range of activities in conflict affected states and helped Africa’s entrepreneurs gain access to finance. 

IFC invested $3.5 billion from its own account, and mobilized $1.8 billion from other investors.  In FY 2013, IFC’s supported projects that provided loans for 54,000 small and medium businesses, encouraged 13.7 million microfinance clients; and improved health and education for 360,000 people. IFC’s investments in wind power and other renewable energy reduced 667,000 tons of greenhouse gas emissions.

Advisory Services

IFC Advisory Services spending reached $65 million during the most recent fiscal year. Projects were active in 42 countries, with 126 projects, valued at $217 million over the life of the projects. During fiscal year 2013, advisory services projects improved access to lighting and education  services for 1.6 million people; generated 27,000 jobs; trained entrepreneurs and connected farmers to global markets. Three public-private partnership mandates were successfully closed, helping deliver health services to 360,000 people in Lesotho and Nigeria and power to 75,000 in Liberia.

IFC and the World Bank's Investment Climate Advisory Services worked with governments in Sub-Saharan Africa to implement over 50 reforms that benefited the private sector in 17 different countries. In Uganda, for example, licensing reforms led to private sector cost savings of $15.5 million. The 2013 Doing Business report found that of the 50 economies globally making the most improvement in business regulation for domestic firms since 2005, one-third were in Sub-Saharan Africa.

Agribusiness

IFC’s agribusiness investments in Sub-Saharan Africa reached $600 million in the 2013 fiscal year. By investing in companies such as the Kenya Tea Development Agency and the Export Trading Group, IFC created economic opportunity for 263,000 farmers in sub Saharan Africa.

Infrastructure

IFC funding for infrastructure projects in Africa reached $1.5 billion. IFC’s Infraventures division joined hands with private sector partners to develop wind power projects in Tanzania and Kenya. In West Africa, IFC invested aviation companies and mobilized funding for the Lomé port to expand the transportation network and improve trade infrastructure in the region.   

Fragile and Conflict Affected States

Assisting in fragile and conflict situations is a strategic priority for IFC in Africa, and during the most recent fiscal year, IFC provided support in nearly all African economies emerging from conflict. IFC’s Conflict Affected States in Africa Program provided advisory support and funding to eight countries (Burundi, the Central African Republic, Cote d’Ivoire, the Democratic Republic of Congo, Guinea, Liberia, Sierra Leone, South Sudan). IFC’s programs in these countries helped strengthen the private sector foundation, and create opportunity and jobs. Last fiscal year, CASA received approval to expand to all 19 fragile and conflict affected states in Sub-Saharan Africa and will focus the first phase of the expansion on Mali, Somalia, and Zimbabwe. 

Treasury

Through innovative use of treasury operations, IFC expanded its capability to develop domestic capital markets and serve clients with local currency financing. In FY13, IFC provided more than $350 million in local currency loans to countries in Sub-Saharan Africa. IFC pioneered a Nigerian naira bond, raising $75 million in local currency for private sector investments. IFC is working with authorities in a number of countries including Ghana, Nigeria and Zambia on programs that will enable IFC to regularly issue local currency bonds.

IFC’s focus on encouraging investments between emerging markets was strengthened this year through new investments of nearly $400 million in so-called South-South investments. This included African cross-border investments, such Mali-based Azalai Hotels Group’s new hotel project in Cote d’Ivoire. In Nigeria, IFC financing supported major investments by two Indonesian companies: Indorama’s investment in Eleme Fertilizer and Wings Group’s Nigerian operations...."

 http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/sub-saharan+africa/investments/investments

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Inspired Evolution Investment Management

"Inspired Evolution is a specialised investment management business and authorised financial services provider located principally in South Africa. Inspired Evolution offers a dedicated team with a deep global track record positioned to lead clean energy and resource efficiency investments across sub-Saharan Africa.

Investment Focus

Inspired Evolution’s investment focus centres predominantly on the advancement and use of innovative and proven best-of-breed technologies that are scalable across a number of sectors or select industry focus areas. These technologies are demonstrating increasingly large and high-growth emerging market opportunities across southern Africa in the multi-billion rand renewable energy, energy efficiency, biofuel, manufacturing, pollution and waste management, green chemistry, transportation and agribusiness sectors (among others).

The positive impact of these clean technologies is now commonplace in developed economies. Southern and South Africa’s emerging markets are rapidly following suit. The development of progressive policies and stricter legislation, the removal of remaining regulatory barriers combined with government targets and directives, and the introduction of financial and economic incentives, has catalysed and enabled the development and use of clean technologies.

To supplement deal flow in the clean energy and resource efficiency investment space and to capitalise on other emerging natural capital market opportunities, Inspired Evolution’s investments also target areas such as sustainable agriculture, natural health, ecotourism, sustainable settlements and green real estate.

The fund will focus on cleaner energy and the environment – aiming to generate an enhanced annual internal rate of return by focusing on the following eight sectors and sub-sectors:

• Cleaner energy generation and energy efficiency
• Cleaner production technologies and processes
• Air quality and emissions control
• Water quality and management
• Waste management
• Agribusiness and forestry
• Natural products, organics and natural health
• Sustainable buildings and environmental real estate..."

 http://inspiredevolution.co.za/

TriVest

TriVest is a leading provider of equity for growth capital financings, middle market corporate acquisitions and recapitalizations. Since its founding, TriVest has experienced a huge demand for capital in the early stage sector in Southern Africa, where innovative early-stage and start-up companies often lack the financial, managerial and network resources for expansion and growth.

TriVest prefers to invest in quality small to medium sized companies, which possess or promise strong and defendable market positions in growing or fragmented industries. TriVest always co-invests with company management and pursues transactions which are supported by the management and Boards of Directors of the investee companies.

We also aim to become the preferred sponsor of small to middle market acquisitions. Our mission is to build a track-record of proven closing capabilities and the ability to successfully grow acquired businesses in concert with management.

TriVest pursues investment opportunities which are based in South Africa, but with the potential to achieve scale through expansion within Africa.

TriVest is a member of the South African Private Equity and Venture Capital Association (SAVCA) and upholds the industry’s good practice and valuation principles.

TriVest prefers to invest in the following industries: Healthcare (including Biotechnology) Renewable Energies Security We select businesses whose market position is strong and can be protected from new or unexpected competition. The firm has particular interest in acquiring companies in fragmented industries. Successful acquisition and growth financing candidates usually possess the following characteristics: Talented and committed management team Strong and defendable market positions Scalability A product line with extended life cycles and low obsolescence risk Sustainable and above average operating profit margins (>25% in Retail and Manufacturing, >50% in Services)..." http://www.trivest.co.za/AboutUs/Introduction.aspx

Utho

"Utho SME Infrastructure Fund

The Utho SME Infrastructure Fund was established by Utho Capital Fund Managers (Pty) Ltd. The fund achieved a first closing in April 2011 of R61.5 million with commitments from the Industrial Development Corporation (“IDC”), the Small Enterprise Finance Agency (“sefa” previously known as Sefa) and the founder Utho Capital. The Fund Manager is seeking to raise additional capital commitments to secure total fund commitments of R120–300 million.

The Fund seeks to achieve long term capital gains by investing in high growth Small and Medium Enterprises (“SMEs”) involved in “infrastructure development” which encompasses various types of businesses involved in construction, manufacturing, material suppliers, transport, logistics, power, renewable energy and property development in South Africa.

The fund has closed four investments West Coast Power Solutions (a renewable energy business), Bantsho Homes and Maintenance (a construction company), Richards Family Investment Properties (a property development company) and WHTP Construction. 

The challenge and opportunity for the fund is to identify small to medium sized companies with strong management and the ability to scale up rapidly with the right level of support, to enhance the portfolio companies’ value. Utho Capital Fund Managers will assist these businesses with not only the provision of capital but value-added committed and practical hands on business support services in respect of strategy, fund raising, financial controls and reporting..."

http://www.utho.co.za/ 

Vantage Capital

"Vantage Capital Group

Vantage Capital Group is a black investment and financial services group, being 51% owned and controlled by historically disadvantaged South African individuals and groups (“HDSA”). Vantage’s key focus areas are third-party private equity fund management (technology, mezzanine and renewable energy funds), advisory and debt placement services, and on-balance sheet proprietary investments. The group currently has funds under management and investments of over R4.5 billion ($450 million).

Vantage Capital was one of the first black-owned and managed private equity companies in South Africa, and is one of the few remaining independent black-owned private equity and investment companies which are not linked to any major financial institution. Vantage Capital was launched in 2001 (after a merger with MMR Equity Capital) with the purpose of establishing a Venture Capital Technology Fund with commitments from the Industrial Development Corporation (IDC), the Dutch Development Bank (FMO), the Transnet Retirement Fund and the Eskom Pension and Provident Fund.

Since inception in 2001, the Vantage Technology Fund has invested R130 million ($13 million) in ten investments ranging from small start-ups, to larger established listed entities. Six investments, Mosaic Software, VoxTelecom, ComTech, Aquitec, Grapevine and Spescom have been successfully exited. Three investments have been written off and the remaining actively-managed investment, L@w, is cash flow positive, highly profitable, and has exciting growth plans. The fund is now in the last phases of divestiture.

In the latter part of 2004, having had nearly four years’ experience in private equity, and being a majority black-owned and controlled group, Vantage Capital decided to pursue opportunities that were arising out of the BEE Charters. To this end, Vantage Capital Investments was established to source proprietary investment opportunities, which would not conflict with the existing Technology Fund in terms of industry sector and size of transaction. To date, Vantage Capital Investments has participated in three such transactions, namely Incwala, ComCorp and Kwikspace. Vantage successfully exited its investment in Incwala in 2010.

In early 2005, with the investment period on the technology fund coming to an end, Vantage Capital started to explore the possibility of raising a second fund. With the help of the Dutch Development Bank FMO, it was decided that the low interest rate environment then prevailing in SA - which represented a significant departure from the high interest rates that characterised the eighties and nineties in the country - supported the establishment of a mezzanine fund. The fund raising process culminated in the final closing of the Vantage Mezzanine Fund in November 2007, with commitments of R1,003 million ($100 million). One-third of the funds were raised from foreign investors and the balance from local institutions and the Group as a co-investment commitment. In 2007/2008, the Fund was fully invested in five transactions in South Africa, namely Safripol, York Timbers, Tsebo, Primedia and Masivumeni. By December 2013, Vantage had successfully exited three of these investments.

In March 2012, Vantage Mezzanine closed Mezzanine Fund II, which has a pan-African investment focus (with a 35% allocation to opportunities outside South Africa) and can make investments of up to R300 million ($30 million) in a single transaction. R1.9 billion ($190 million) of commitments were secured from fourteen pension funds, three charitable endowments, two development finance institutions and a family office. To date, Vantage has deployed approximately one-half of its commitments and is well on track to be fully invested by the end of 2014.

Vantage is well-positioned as Africa’s leading mezzanine financier, capitalising on its strong position in the South African mezzanine market and building a portfolio of income generating mezzanine assets in South Africa and in the rest of Africa.

In 2012 Vantage started a Debt Capital Markets business which focuses on raising public and private debt for mid-size and large corporates, in the local and international debt capital markets (including corporate and hybrid bonds). The business also provides debt advisory services including debt restructurings, distressed debt advisory, and refinancing.

In 2013, Vantage launched its R2.2 billion ($220 million) GreenX Fund, which provides investors with exposure to South African renewable energy projects. This is achieved through the Fund issuing Asset Backed Notes to its investors and using these proceeds to acquire senior debt in a diversified portfolio of seven solar and wind projects that collectively produce 548 MW.

Mutle Mogase, Chris Lister-James and Colin Rezek are the founders of Vantage Capital. The group is chaired by Mutle Mogase, Technology is directed by Chris Lister-James, Mezzanine is headed by Colin Rezek and Luc Albinski, Debt Capital Markets is led by Ashley Benatar and GreenX is led by Alastair Campbell. They are supported by fourteen investment professionals and thirteen support and administrative staff.

http://www.vantagecapital.co.za/ 

African Infrastructure Investment Managers

"AIIM strives to be the most creative and trusted infrastructure investment firm in Africa.

AIIM looks to provide compelling investment opportunities to investors that deliver superior risk adjusted returns whilst also creating value for governments and communities.

AIIM was established in 2000 as a joint venture between the Macquarie Group and Old Mutual Investment Group (Pty) Ltd.

At 31 December 2013, AIIM has funds under management of USD1.18 billion. The funds managed and advised by AIIM are designed to invest long-term institutional unlisted equity in African infrastructure projects such as airports, ports, pipelines, power generation, toll roads, renewable energy and communication infrastructure assets.

The depth of knowledge and experience in the AIIM team and its shareholders allows it to identify quality investment opportunities, and to apply a disciplined approach to the investment and asset management process.

AIIM's Funds have been actively investing in Africa's growth for over a decade...."

 http://aiimafrica.com/

Thebe Investment Corporation

"Founded in 1992 as a pioneering black-owned company, Thebe Investment Corporation (Thebe) is one of South Africa’s leading investment companies, managing assets of over R6 billion. Thebe is a unique entrepreneurial company that does not exist only to make a profit, but is driven by a commitment to serve the broader interests of the community.

Our investment portfolio spans tourism, mining resources, infrastructure, renewable energy, petrochemicals, telecommunications, financial services, and healthcare. We actively work to promote mutually beneficial economic partnerships by investing in or developing businesses that create value for our stakeholders through the origination, execution, and prudent management of our investments...."

 http://www.thebe.co.za/