Atta Financial Update

Executive summary for the week of 24-Jan-17 to 31-Jan-17 (week 5)

Development efforts in Africa have historically been the role of foreign aid agencies, local and international NGOs and publicly-funded multilateral finance institutions. African governmental spending has also played a central role. Private-sector funded economic development, while existent, has been much less present and visible.

Over the past decade and a half, the growing Africa-focused private equity community has had a unique opportunity to play its part in what is becoming a development relationship. African economic growth has created opportunities for PE firms to create value and get returns, and, at the same time, PE is good for African economic development: it helps to create a healthy business sector, which promotes job creation and political stability, and takes pressure off governments to be universal problem-solvers.

Since the 1990s, the number of funds has grown from around a dozen Africa-focused PE firms, managing about US$1bn, to more than 200 firms with some level of focus on Africa, managing more than US$30bn. In the past five years, firms raised over US$16.2bn and invested across a variety of sectors and in every region of the continent (FT, 2017).

Fact: Karl Marx’s final works were Last words are for fools who have not said enough!

Africa Finance Corporation US$150m debt issuance

  • Africa Finance Corporation, the multilateral finance institution, issued its maiden Sukuk, raising US$150 million, beating its initial target of US$100 million
  • The Murabaha Sukuk, has a three-year tenor and will mature on January 24th, 2020
  • Moody’s has awarded the privately placed issuance an A3 senior unsecured rating

Inspired Evolution held a first close for its second fund at US$90 million

  • Inspired Evolution announced that it held a first close for its second fund, garnering commitments totaling US$90 million from development finance institutions, specialised fund-of-funds and a family office
  • Evolution II, which is aiming to hit US$250 million in time for its final close at the end of this year, is a 10-year closed-end fund which will make equity and equity-related investments to take significant minority or equity-control stakes in clean and sustainable development and project finance infrastructure opportunities and growth equity investments in energy and resource efficiency businesses and their supporting value chains

Pearl Capital Partners has held a €12 million (US$12.9m) first close

  • Pearl Capital Partners, the Kampala headquartered private equity firm which specializes in agriculture investments, has held a €12 million (US$12.9m) first close for Yield Uganda Investment Fund
  • The fund is a new agro equity impact fund being supported by the European Union, the International Fund for Agricultural Development and Uganda’s National Social Security Fund

Africa Merchant Capital launched its subsidiary AMC Trade Finance

  • London-based Africa Merchant Capital has launched its subsidiary AMC Trade Finance
  • Since launch, AMC Trade Finance has settled and closed 32 transactions including, most recently, a series of pre-shipment trade finance transactions for the import of US$6 million worth of machinery to Rwanda on behalf of an international equipment wholesaler with suppliers with manufacturing facilities in multiple countries including Hong Kong, the USA and the Netherlands