Atta Africa Financial Update

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.

African pension funds are flourishing - the top 10 African pension funds manage a combined US$380 billion in assets, US$29 billion of which are to be allocated to private equity deals. A lack of depth among the listed equity markets has driven institutional investors to look for greener pastures, and recent market liberalisation reforms have acted as a catalyst towards non-listed investments.

The usual arguments of demographics, growth and middle-class emergence in favour of investments in Africa have also benefited pension funds, many of them now free from government influence, as more and more Africans wish to secure their pensions. South African pension funds regulations have been relaxed to allow 5% of assets under management to exit the country, a major step towards the institutionalisation of private equity capital raising.

Sun International has agreed to acquire Peermont Group for US$775m

  • Sun International has agreed to acquire Peermont Group in a deal worth nearly US$775 million from Mineworkers Investment Company
  • MIC led a management buyout of the Casino and Leisure group

Xterra Capital has announced the launch of Xterra Africa Property Fund

  • The fund is a US$300 million real estate fund targeting Africa-based opportunities in mixed use developments as well as the Commercial, Retail and Hospitality
  • The fund anticipates partnering with a number of Africa's large, reputable developers to build and secure a pipeline of prime development projects across the continent, including Cote d'Ivoire, Ghana, Kenya, Namibia, Nigeria, Rwanda and South Africa