Private Equity

CAIRO (Capital Markets in Africa) – Private sector business activity in Egypt slowed in February to its lowest level since September 2017, as companies struggled with liquidity and new orders continued to fall, according to an Emirates NBD-Markit survey. The Purchasing Managers Index for the non-oil private sector fell for the sixth consecutive month, to 48.2 from 48.5 in January — well below the 50 mark that signals a growth in business activity. The sustained…

LAGOS (Capital Markets in Africa) – Research provider Preqin indicated that 1,175 private equity (PE) funds raised a total of $426bn in capital commitments worldwide in 2018, compared to 1,670 PE funds that raised $565.8bn in 2017. Also, it said that 214 buyout funds raised $229bn in 2018, or 53.8% of total capital commitments, followed by 605 venture capital funds with $78.9bn (18.5%) in raised capital, 155 growth funds with $59.1bn (13.9%) in capital commitments,…

KINSHASA (Capital Markets in Africa) – Investment firm Blackstone Group LP is scaling back its bet on Africa, almost five years after it made a commitment to spend billions of dollars alongside the continent’s richest man. The world’s largest alternative-investment manager is in the process of selling its Africa subsidiary Black Rhino Group back to management, according to a person familiar with the deal, who asked not to be identified because the discussions are private. The unit…

JOHANNESBURG (Capital Markets in Africa) – The Public Investment Corp.’s board of directors offered to resign amid an inquiry into allegations of wrongdoing, throwing the South African manager of more than 2 trillion rand ($150 billion) deeper into crisis. The institution responsible for most South African government worker pension funds has been “destabilized” by a series of claims, including against at least four board members, Chairman Mondli Gungubele said in a letter to Finance Minister Tito Mboweni co-signed by…

LAGOS (Capital Markets in Africa) – Amethis, the investment fund manager dedicated to long-term responsible investments in Africa, is pleased to announce an intermediary closing of its second Pan-African fund, Amethis Fund II, which collected EUR 305mn from a broad range of investors in Europe and Africa, exceeding its initial target of EUR 300mn. Amethis, founded by Luc Rigouzzo and Laurent Demey in partnership with the Edmond de Rothschild Group, manages two other funds, Amethis…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s Department of International Relations and Cooperation expressed “disappointment” with five embassies for telling President Cyril Ramaphosa that foreign investment is at risk because of the country’s failure to prosecute people for government corruption. The decision by the U.S., the U.K., Germany, the Netherlands and Switzerland to send a memorandum to the presidency instead of communicating through the department is a “departure from diplomatic practice,” the department said…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s shrinking risk premia are a sign that investors are increasingly pricing out the chances of a credit downgrade for Africa’s most industrialized economy. Benchmark bond yields, credit default swaps and the nation’s sovereign spread have all declined to multi-month lows, even after Finance Minister Tito Mbowenisaid in October that government debt would peak two years later and at a higher level than previously forecast. But with emerging markets on a roll since the…