Successful first close for African private equity fund - Metier Capital Growth Fund II
The Metier Capital Growth Fund II, which FMO is an investor in, completed its first close in mid-February 2015, raising 40% of its total target funding, and has already signed a binding sale agreement with its first portfolio company, a consumer retail chain with a presence in South Africa and the rest of the continent. The fund’s investment theme is premised on obtaining significant exposure to South, Southern and Sub-Saharan Africa. It focuses on mid-cap entrepreneurial businesses requiring growth capital, in sectors which demonstrate emerging market growth potential.
Metier Capital Growth Fund II is targeting exposure of 50% to Sub-Saharan Africa, excluding South Africa. This will be achieved by a ‘look through’ approach, investing into South African-based companies which are well positioned to expand into the continent, leveraging experienced, talented South African skills to access markets and deal flow.
Focus sectors
Investments are targeted in sectors including transport and logistics; retail; health; tourism; Fast Moving Consumer Goods; agri-processing; infrastructure services and education. These are sectors set to benefit from demographic trends such as population growth and increased urbanization, and the accompanying consumer spend from the emerging middle class. Fund investments are also in sectors which are advantageously exposed to the multiplier effects of rising capital spend on infrastructure and increasing intra-regional and international trade.
Assistance of private equity investment
Many economies in Sub-Saharan Africa are expecting quite high GDP growth rates for the foreseeable future, and the annual African urban population growth rate up to 2030 is expected to be greater than 7%. Utilising South African businesses as a conduit to the rest of the continent, the fund will invest in companies that are well positioned to participate in the broader region’s growth prospects. With the assistance of private equity investment, these businesses should be able to deploy their operational skills, industry expertise, customer relationships, systems, products and services, as well as governance standards, into opportunities in the broader region.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. For the last 45 years, FMO has been investing in the private sector in developing countries. We believe in a world in 2050 where nine billion people can live well and within the boundaries of the planet. In pursuit of this vision, our mission is to empower entrepreneurs to build a better world. We specialize in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 6.6 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact
Paul Hartogsveld
