Atta Africa Financial Update

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

Executive summary:African private equity fundraising breaks records in 2015.

African private equity funds raised a record US$3.89 billion in 2015, a 51 percent jump from the US$2.57 billion they accumulated in 2014, according to data collected by Private Equity International.

For many, this reinforces the success story that has characterised Africa’s fundraising scene - from funds targeting the continent to start-ups.

Much of the funds have found their focus on either property, or technology, which is a switch from the traditional focus on natural resources, including mining and exploration, which has been the driving force behind investment interest. Growing demand for telecommunications, infrastructure, consumer goods and financial services, has widened the range of opportunities for potential investors even further.

2015 also set the record for the number of private equity exits in Africa, with 40 announced by funds affiliated to African Private Equity and Venture Capital Association (AVCA).

Old Mutual backs Two Rivers development in Kenya

  • Old Mutual Property is backing Kenya’s Two Rivers Mall development in a US$62 million deal
  • The transaction is structured as a mix of equity and debt made up of 10% in newly issued shares and a loan that is convertible into an additional 40% equity stake
  • Old Mutual have invested at a valuation approximating US$244 million
  • The transaction is the first real estate deal in East Africa for the Old Mutual Group
  • The development constitutes two hotels, an office building developed by Victoria Commercial Bank, and residential apartments

Ethos pays US$97 million for control of South Africa's Eazi Group

  • Ethos Private Equity has acquired a 65 percent stake in South African equipment rental and sales company Eazi Group for 1.6 billion rand (US$97 million)
  • This is the fifth private-equity investment by its Ethos Fund VI in the past year
  • The Eazi Group started in 2003 and specialises in the sales, rental and servicing of industrial equipment