The perception that investing in Africa involves high risk and low returns is changing. It is now one of the most talked about parts of the world for private equity firms looking to invest in emerging markets.
Strong improvements in democracy and in the legal and regulatory environments across Africa, combined with a young and growing middle-class and structural improvements in infrastructure now makes the continent an attractive private equity proposition. Risk management is an important consideration for successful investment in the region, and a legal partner that understands the region’s unique environment is crucial.
Private equity is a key part of ALN firms’ M&A practice, and we anticipate this to increase as pension funds increasingly consider private equity investments as a way to diversify their portfolio. We have advised on the majority of landmark private equity transactions on the continent and have acted on behalf of pan-African and international funds and development institutions, as well as the region’s biggest players.
ALN’s award-winning private equity teams provide strategic and structuring advice to the continent’s key players and their best-in-class advice is crucial to mitigating risk and maximising returns.
Representative transactions include advising:
A private equity firm, in connection with its acquisition of approximately 24% of the shares in ICEA Lion Insurance Holdings from First Chartered Securities, the holding company of the ICEA group of companies which undertakes insurance business in Kenya, Uganda and Tanzania.
In connection with the acquisition of a majority of the share capital of Engie’s interest in upstream petroleum activities in Algeria.
In connection with their initial and subsequent equity investment in a 14.3% of stake in Britam Holdings, a Kenyan listed insurance and asset management group with operations in Kenya, Tanzania, Uganda, Rwanda, Malawi, South Sudan and Mozambique.
A US based Private Equity fund, in connection with the sale of its stake in Java House, East Africa’s leading coffee-led casual dining chain in Kenya, Uganda, Rwanda and Tanzania, to Abraaj Group, a leading investor operating in growth markets
In connection with the development of an A-Grade product-specific warehouse and logistics park, on a 103-acre piece of land along Nairobi’s Eastern Bypass.
as lead international counsel in connection with their investment into Stratton Africa Holdings (Stratton), a Mauritian holding company for Merec Industries, Maputo Grain Terminal and Merec Mozambique, a wheat importation and value chain company based in Mozambique.
In connection with a USD 10 million investment into a Series B Financing Round in Solarise Group, a pan- African company that focuses on leasing, financing and investing in the renewable energy sector.
In connection with the development of a financial centre in Kigali Rwanda.
A leading Africa-focused private equity fund, in connection with the disposal of its stake of 24.99% of its shareholding in Equity Group Holdings, a company listed on the Nairobi Securities Exchange, the Uganda Stock Exchange and the Rwanda Stock Exchange, through a series of different transactions with multiple buyers, as well as on-market and off-market sales, and which is to date the largest private equity exit successfully completed in sub-Saharan Africa.
A global impact fund led by TPG, a private equity firm, in connection with the acquisition of 100% of the shares of Cellulant Corporation, a leading digital payments’ service provider with ten subsidiaries in Kenya, Tanzania, Uganda, Rwanda, Zambia, Malawi, Mozambique, Ghana and Zimbabwe.
A holding company owning eight East African companies active in the pharmaceutical industry, and a leading distributor of pharmaceutical products in Kenya, Tanzania, Rwanda and Burundi and the largest manufacturer of parenteral in Uganda in connection with the exit by AfricInvest and acquisition by the Carlyle Group, an American based multinational equity fund, of a majority of the issued share capital in AK Life Sciences, a subsidiary of Kiboko Holdings.