ValuAlliance Money Market Fund Attains an A+(f) on its Annual Fund Risk Rating
ValuAlliance is pleased to announce that the fund risk rating of its Money Market Fund has been reviewed upward from A(f) to A+(f) by Agusto & Co., one of Nigeria’s rating agencies. The rating reflects the Fund’s low exposure to credit, liquidity, and interest rate risks and the strict adherence to regulatory and internal guidelines.
Within the review period (March 2021 – February 2022), the Fund held an average of 30% of net assets in Federal Government of Nigeria (FGN) securities, which are rated ‘Aaa’ on the national rating scale.
Funds rated ‘A+(f)’ are believed to have low to moderate exposure to downside risk (impairment to the net asset value) in the medium term. The Fund’s main objective is to continue providing investors with a steady return on capital, liquidity, and capital preservation by making credible investments in a diversified portfolio of high-quality, short-term money market instruments.
About the ValuAlliance Money Market Fund
ValuAlliance Money Market Fund is an open-end collective investment scheme promoted and managed by ValuAlliance Asset Management Limited (‘ValuAlliance’)- a wholly-owned subsidiary of the African Capital Alliance (ACA) Group.
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Ogedi Onyeama Speaks at the AVCA’s Pension Funds and Private Equity in Nigeria
The African Private Equity and Venture Capital Association (AVCA) and Pension Fund Operators Association of Nigeria (PenOp) in December 2021 launched the inaugural Pensions Funds and Private Equity in Nigeria Study.
This study marks the launch of a broader partnership between AVCA and PenOp, investigating and assessing the role of Nigerian pension funds in empowering local investors in Nigeria’s private equity industry.
Ogedi Onyeama, Head Investor Relations at ACA, was hosted among other esteemed industry experts by AVCA in a webinar to mark the launch. The discussions analyzed the responses from Nigeria’s leading pension fund managers incorporated in the report, exploring their interest and perception of private equity as an asset class.
Ogedi, in speaking to the drivers for the private equity industry in Nigeria, had this to say “Despite recent macro headwinds and what has turned out to be a very challenging environment for raising capital, we hold the firm view that the fundamentals of our market support a really strong medium to long-term growth story, and that there are opportunities to create value and provide very attractive returns to investors through private equity investments.
The growth drivers include the youth demographics of our market, organisation trends that have driven consumption, the infrastructure deficit, underserved consumer demands in many sectors – including Tech, opportunities to bridge the digital divide and drive digital transformation in various sectors and industries/value chains and markets, as well as opportunities created by reforms to build large companies that deliver skill. These drivers present opportunities for private capital to find and back strong management teams in the right sectors and create value for the market and investors.”
Ogedi Onyeama to Speak at the Virtual Launch, Pensions Funds and Private Equity in Nigeria
The African Private Equity and Venture Capital Association (AVCA) and Pension Fund Operators Association of Nigeria (PenOp) will together host the launch of AVCA’s Pension Funds and Private Equity in Nigeria Study. The virtual event is scheduled for December 14th, 2021. Time is 1pm WAT.
This study marks the launch of a wider partnership between AVCA and PenOp, investigating and assessing the role of Nigerian pension funds in empowering local investors in Nigeria’s private equity industry.
Ogedi Onyeama, Principal, African Capital Alliance will be speaking at the Virtual Launch, among other industry experts.
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African Capital Alliance Completes Significant Equity Investment in WIOCC to drive long-term growth
African Capital Alliance (ACA), a leading pan-African alternative investment firm focused on managing investments across Africa, is pleased to announce its equity investment, via its CAPE IV fund, into WIOCC (West Indian Ocean Cable Company), Africa’s hyperscale infrastructure provider. ACA’s investment forms part of WIOCC’s $200m capital raise. The investment will support WIOCC in its expansion strategy across Africa and accelerate its investment in enhancing the continent’s digital infrastructure.
Established in 2007, WIOCC operates an exceptional hyperscale communications platform that delivers critical services to its wholesale clients across 30 countries in Africa and many more globally. The platform comprises more than 75,000km of terrestrial fibre interconnecting well over 100 Points of Presence (PoPs), and seamlessly integrated with its strategic investments in multiple subsea systems. One of the leading players in Africa’s wholesale connectivity market, WIOCC is responsible for more than 50% of capacity activated on the Eastern Africa Submarine Cable System (EASSy), a key undersea fibre-optic cable system connecting countries and consumers in Eastern and Southern Africa to the rest of the world.
The current high calibre management team has been in situ since the founding of the company and has had a proven track record of delivering double-digit revenue and EBITDA growth over the last four years towards building a world-class business.
ACA will partner with WIOCC to support the management team in expanding and extending what is Africa’s first, truly hyperscale network infrastructure, accelerating rollout of new digital infrastructure to support its wholesale clients – cloud operators, content providers, fixed and mobile telcos, ISPs and other operators – in taking advantage of the many opportunities Africa has to offer – reaching underserved communities, and providing opportunities to millions of people in those remote areas. WIOCC, with ACA as a partner, is addressing strong market fundamentals with internet penetration expected to expand significantly. ACA’s aim will be to ensure that it continues to support WIOCC’s growth through innovative, sustainable strategies.
Commenting on the announcement, Paul Kokoricha, Partner, African Capital Alliance, said: “WIOCC is a fast-growing wholesale capacity provider in Africa that has positive market fundamentals given the rate at which internet penetration is growing and the desire for more OTT services. Our partnership with them will deliver their vision of being Africa’s leading carriers’ carrier, setting the standard by which performance is measured in the industry, through the delivery of robust and creative solutions for each client, with exceptional support, leading to successful long-term partnerships. We are impressed with the management team, and we are confident our partnership will deliver for all stakeholders.
Chris Wood, CEO of WIOCC, added: “We are excited to conclude this stage of our capital raise to support further expansion of our hyperscale infrastructure. Telecommunications is a critical service that is helping to drive financial and digital inclusion across Africa, both connecting people to the financial system and digitalizing businesses. We have made significant progress over the last few years and built a solid foundation from which to grow. The inward investment and partnership with ACA will help us in enabling businesses and consumers in Africa to participate in and benefit from digital economy. ACA’s track record and partnership mentality will be a welcome addition to WIOCC, and we very much look forward to working with them for long-term sustainable growth.”
DEG acquires a minority equity stake in Ashwah Holdings Limited, parent company of Daraju Industries Limited
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, Germany’s development finance institution and a subsidiary of KfW Group, announced today the acquisition of a minority equity stake in Ashwah Holdings Limited (“Ashwah”), the parent company of Daraju Industries Limited (“Daraju”) – one of Nigeria´s leading manufacturers of FMCG products in the personal care and household care segment. Ashwah is also currently a portfolio company of African Capital Alliance (ACA). By investing in Ashwah, DEG continues its focus of supporting indigenous emerging market companies to further industrialize and become regional leaders. As part of this deal, DEG will provide growth financing as well as advisory services to the management of the company.
Ashwah, via its flagship company Daraju Industries Limited, manufactures and trades over 100 stock keeping units (SKUs) of products tailored to meet the everyday needs of the middle to mass market consumers in Nigeria. The group’s key competitiveness lies in the company’s value for money offerings, strong brands, diversified product portfolio, and significant production capacity.
Speaking on the transaction, Mr. Tunji Nelson, Investment Manager at DEG said: “We are delighted to be partnering with ACA in supporting the continued growth of Ashwah. We strongly believe that this is the ideal time to enter the personal care FMCG market in Nigeria, and that Ashwah, via Daraju provide an excellent platform. We look forward to supporting Ashwah and management in the company’s next phase of development”
Mr. Paul Kokoricha, Partner at ACA said: “Since our investment in 2018, Ashwah has continued to grow its operations and expand its manufacturing base. The management team, under the visionary and disciplined leadership of Peeyush Garg, have repeatedly demonstrated resilience and a deep understanding of the Nigerian FMCG market and this has reaffirmed our confidence in the company’s ability to deliver strong returns to our fund. ACA welcomes DEG as a co-investor in Ashwah. We are optimistic, that this partnership will further enable Ashwah deliver on its agreed targets, and likely exceed the expectations of all stakeholders. This makes us truly excited”.
Mr. Peeyush Garg, Chairman and CEO of Ashwah, said: “Together with our entire management team, we are very excited to be partnering with DEG. We are confident about DEG’s strong commitment to providing us with the additional technical backing that will continuously enable us to support our customers. DEG definitely has the capacity, expertise, and network, to support us in expanding our business, as well as deliver innovative solutions for our market.”
About DEG
For almost 60 years, DEG has been a reliable partner to private-sector enterprises operating in developing and emerging-market countries. DEG provides its customers with tailor-made solutions, including financing, promotional programmes and advice tailored to individual needs. They can thus develop successfully and sustainably, while generating local added value and creating qualified jobs. With a portfolio of around EUR 8.5 billion in approximately 80 countries DEG is one of the world’s largest private-sector development financiers. Learn more: www.deginvest.de
DEG recently provided debt financing to United Bank for Africa (UBA). Speaking on DEG’s West African investments, Mr. Bernd Tilemann, Regional Head West Africa at DEG commented: “DEG is delighted to enter into a long-term cooperation with Ashwah. With our commitment we address the current economic challenges of the country while fostering private sector growth and impact in the largest economy of the continent.”
About African Capital Alliance
African Capital Alliance (ACA) is a market pioneer and leading pan-African investment firm, sponsoring funds and managing investments all over sub-Saharan Africa. Since its founding in 1997, ACA has invested across multiple market cycles through five private equity and real estate funds. Its CAPE IV fund raised in 2015 invested in Ashwah Holdings Limited in 2018. For more information, please visit https://chopknuckle.com.
Transaction Advisors & Partners
The financial advisory on this transaction was performed by Delwik Gmbh, a boutique female led investment advisory company. As a development finance institution, DEG is proud of Delwik’s involvement, as it has added to DEG’s focus of promoting the UN Sustainable Development Goal #5 on gender diversity. For more information on Delwik Gmbh, please visit http://www.delwikgroup.com.
Legal advisors to DEG, the buyers/investors, include DLA Piper LLP and Walkers Global. For more information on DLA Piper, please visit https://www.dlapiper.com/en/us/. For more information on Walkers, please visit www.walkersglobal.com.
Legal advisors to Ashwah Shareholders, the Sellers, include Watson Farley & Williams LLP and Appleby (BVI) Limited and G Elias on Nigerian Law matters. For more information on Watson Farley & Williams, please visit https://www.wfw.com. For more information on Appleby, please visit www.applebyglobal.com. For more information on G Elias, please visit https://www.gelias.com/.