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Isabelle Diop
Funds raised for Sub-Saharan Africa in 1H 2017 decreased by 44% year-on-year, suggesting the fundraising environment is increasingly
Research Analyst
difficult as LPs aim to reduce their number of GP relationships. Still, some first-time fund managers with targeted strategies have
diopi@empea.net
reached closes, including Sahel Capital’s Fund for Agricultural Finance in Nigeria and Eos Capital’s Namibia-focused Allegrow Fund.
Pan-Sub-Saharan Africa funds have consistently received over 60% of capital raised in recent years. However, their share decreased +1.202.524.6126
to 45% in the first half, while East Africa-focused funds accounted for 43% of funds raised. Concurrently, traditional growth funds are
losing share to infrastructure, mezzanine and venture capital funds. GPs’ investments also focused on specific sectors and strategies.
Food and beverage, including food retailers, received 25% of deals, with GPs investing across the value chain in companies including FOR MEMBERS ONLY
cashew processor and exporter Tolaro Global and wholesaler KARE Distribution. Fund managers like the Abraaj Group and Helios
Investment Partners doubled down on sectoral expertise by partnering with corporates like Danone and GBfoods to invest in Fan Milk
and GBfoods Africa Holdco, respectively. As LPs turn to specialized fund managers and new market segments in the search for higher
returns, private equity firms adopting targeted approaches could be better equipped to navigate fundraising.
Update to Methodology: Unless otherwise specified, EMPEA’s data and statistics include private equity, private credit, infrastructure and real assets.
Fundraising and capital invested decreased by 44% and 19% The number of deals in Q2 2017 increased by 46%, quarter-on-
respectively, year-on-year quarter
Sub-Saharan Africa Fundraising and Investment, 2013-1H 2017 Sub-Saharan Africa Investment by Quarter, Q3 2015-Q2 2017
$6 5.6 $800 50
5.2 41
35 40
$600
$4 29 29 28 30 30
US$ Millions
No. of Deals
30
US$ Billions
24
$400
2.1 20
2.1
$2 1.7 1.9 4.0 4.2
1.5 1.6 $200
10
1.5 0.6 0.6 168 504 287 442 610 291 374 215
0.2 1.2 0.8 1.1 0.7 $0 0
$0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2014 2015 2016 1H 2017 2015 2016 2017
n Funds Raised n Capital Invested 1H n Capital Invested -n- Total No. of Deals
Consumer goods accounted for almost one quarter of deal Growth funds attracted 51% of fundraising for Sub-Saharan
count, with food producers in particular receiving 17% Africa in 1H 2017
Sub-Saharan Africa Investment by ICB† Industry, 1H 2017 Sub-Saharan Africa Fundraising by Strategy, 1H 2017
51+19+1497A
100%
10%
17% n Other
80% n Telecommunications 7%
8%
9%
10% n Basic Materials
n Growth
60% 12% n Utilities
% of Total
n Infrastructure
55% n Health Care 14%
14% 51% n Mezzanine
40% n Industrials
n Buyout
15% n Consumer Services
n Venture Capital
20% 14% n Financials 19%
24% n Consumer Goods
0%
No. of Deals Capital Invested
East Africa-focused funds accounted for 43% of total Sector-specific funds attracted 41% of total capital raised, the
fundraising in 1H 2017 highest proportion since EMPEA began reporting in 2006
Sub-Saharan Africa Fundraising by Geographic Focus, 2013-1H 2017 Sub-Saharan Africa Fundraising by Sector Remit, 2014-1H 2017
100% 100%
10% 11% 8%
16% 7%
28% 32%
80% 80% 41%
% of Total Capital Raised
24%
43%
60% 60%
88% 92%
40% 82% 83% 40%
72% 68%
63% 59%
20% 45% 20%
0% 0%
2013 2014 2015 2016 1H 2017 2014 2015 2016 1H 2017
n Pan-SSA n Central Africa n East Africa n Southern Africa n West Africa n Multi-Sector n Sector-specific
Click to download exhibits in Excel. © EMPEA August 2017. All rights reserved.
Largest Sub-Saharan Africa Funds Achieving a Close, 1H 2017
Capital Raised, Capital Raised to
Fund Manager(s) Fund Name Fund Type Geographic Focus Currency 1H 2017 (US$m) Date (US$m)
AfricInvest AfricInvest Fund III Growth Sub-Saharan Africa EUR 45 331
Adenia Partners Adenia Capital IV Buyout Sub-Saharan Africa EUR 56 253
Vantage Capital Vantage Mezzanine III Pan African Fund Mezzanine Sub-Saharan Africa USD 28 153
Vantage Capital Vantage Mezzanine III Southern African Fund Mezzanine Southern Africa ZAR 8 140
Frontier Investment Management Frontier Energy II* Infrastructure East Africa USD 116 116
Catalyst Principal Partners Catalyst Fund II* Growth East Africa USD 103 103
EXEO Capital Agri-Vie II Fund* Growth Sub-Saharan Africa USD 100 100
*Fundraising as of 30 June 2017.
Most Active VC Dealmakers in Sub-Saharan Africa, 1H 2017 Most Active Private Capital (excl. VC) Dealmakers
in Sub-Saharan Africa, 1H 2017
Fund Manager(s) No. of Deals
Novastar Ventures 6 Fund Manager(s) No. of Deals
Note: VC includes seed, early-stage and late-stage transactions. African Infrastructure Investment Managers, Catalyst Principal
Partners, Injaro Investments, Metier, Moringa Partnership, 2
Synergy Capital Managers, The Carlyle Group
Note: ‘Private Capital (excl. VC)’ includes private equity growth and buyout, private infrastructure and
private credit investments.
† The Industry Classification Benchmark (“ICB”) is owned by FTSE International Limited (“FTSE”). “FTSE®” is a trademark of the London Stock Exchange Group companies and is used by FTSE under license. FTSE does not accept
any liability to any person for any loss or damage arising out of any error or omission in the ICB. Visit the ICB website for more details.