Business
Private equity investors jostling to take advantage of growing opportunities in Africa
Investors are forming partnerships and increasing manpower to take advantage of the opportunities for private equity investors in sub-Saharan Africa.
A private equity value chain is beginning to form as funds focus their sights on returns from Africa’s economic growth.
At the small end of the scale, Fidelity Capital Partners, a Ghana-based fund manager, changed its name to Jacana Partners in August as part of a move towards a merger with the UK- based firm of the same name.
“It’s a rebranding, the intention to legally merge is there,” said Jacana chief executive Simon Merchant, indicating the merger would take place at the same time as fundraising from international investors for a new US$75 million sub-Saharan Africa fund next year.
The new fund will make investments of between US$1 million and US$5 million, continuing Jacana’s focus on small- and medium-sized investments.
It uses a combination of veteran private equity investors acting as mentors alongside African investment managers.
It has US$45 million under management with US$20 million invested so far in West and East Africa, including in two funds managed in partnership with Fidelity.
