Investec (Martin Rhodes)
The Investec Africa Private Equity Fund 2 has closed, raising $295m to be invested in companies in SA and the rest of Africa.
Before that close, the Investec Africa Private Equity Fund 2 concluded three deals. Last year it bought a significant minority shareholding in South African technology services firm wiGroup, which is looking to grow outside SA. The fund also invested in IDM, a debt management company in SA and made a further investment telecoms towers business IHS Africa in Nigeria, which was initially acquired in its first fund in 2011.
The head of private equity at Investec Asset Management, Francois van der Spuy, said on Thursday that after following the three investments, the fund still had “north of $200m” to invest.
“We have quite a lot of dry powder … We are looking at some interesting opportunities in countries such as Egypt, Mozambique, SA, Ghana and Nigeria. We also see opportunities arising in the East African community and Ethiopia,” Mr van der Spuy said.
He pointed out that Investec Africa Private Equity Fund would look at transactions of between $15m and $40m. He said there was appetite to invest up to $100m but alongside other co-investors.
“We will invest in companies where the owners of the companies have established a track record; where there is a management team willing to become a partner,” Mr van der Spuy said. “Our job is not to allocate capital but to grow business.”
Mr van der Spuy said the company was looking to exit some of its investments in Investec Africa Private Equity Fund 1. “In the next six to 12 months we are probably going to see some news on two to three exits,” Mr van der Spuy said.
In the first fund, investments were made in Daraju Industries, a fast-moving consumer goods company in Nigeria; Big Media in Angola; OK Zimbabwe; SA Taxi Finance; Seven Energy in Nigeria and J&J Transport, a Southern African transport and logistics provider.
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