Private Equity | Oasis Capital achieves first close at US$27mn

LAGOS, Capital Markets in Africa: Oasis Capital Ghana has completed the first close of its second fund, Oasis Africa VC Fund (OAF) at US$27mn. The Fund, anchored by the Dutch Good Growth Fund (DGGF) at US$5mn, has secured commitments of US$7mn from the International Finance Corporation (IFC) and over US$15mn from a local investor base of 5 institutions and individuals.

OAF will invest in Small and Medium Enterprises (SMEs) in Ghana and Cote d’Ivoire providing essential services including education, financial services, housing, healthcare, food services, and hospitality. Investments are expected to be approximately 50 percent debt and 50 percent equity depending on the industry and the country. Transaction sizes will vary between US$0.5mn and US$5mn, with an average of US$3mn.

Established in 2009, Oasis Capital provides risk capital in the form of equity, quasi-equity and profit-sharing instruments to SMEs in Africa. Oasis is currently managing the Ebankese Venture Fund (EVF), a US$11mn fund investing in education, financial services, housing and manufacturing sectors in Ghana. The Ebankese Venture Fund was fully invested in 8 SMEs in Ghana across housing, private education, financial services, and related sectors. OAF will continue to operate in the same SME space in the two countries. Commenting on the deal, the CEO of Oasis Capital, Matthew Boadu Adjei, indicated that Oasis Capital expects DGGF and IFC’s investments to catalyze the Fund to receive additional commitments from similar institutional investors and DFIs towards the goal of reaching US$50mn in commitments by the Final Fund Close in June 2017.

Jan Kuhlmann, Senior Investment Manager, DGGF had this to say: “I am very delighted that the Oasis Venture Capital Fund has achieved its first closing with DGGF’s commitment. With Matthew Adjei and his team, we support a locally entrenched, very dedicated investment team, which has a track of strong commitment and delivered valuable support for its investees. The tailored and adapted investment instruments and the focus on smaller SMEs in clearly underserved market segments in the Ivory Coast and Ghana are truly at the core of DGGF’s mission. Moreover, the Fund combines international capital with local investors in a structure that can be replicated by other investors in the future.”

Maria Kozloski, IFC’s Global Head and CIO of Private Equity Funds, added, “IFC is pleased to be part of Oasis Capital’s further investment in Ghana and its expansion into Côte d’Ivoire. The Fund fits with IFC’s SME Ventures program efforts to support high-potential SMEs that cannot otherwise access risk capital and which will drive development in these markets. With the involvement of funds like Oasis, local entrepreneurship has the potential to play a key role in economic growth of Ghana and Cote d’Ivoire.”