CDC Group invests US$40mn in Africa Capitalworks

05 Oct 2017

CDC Group plc, the UK’s development finance institution, is today announcing a US$40mn investment in Africa Capitalworks (ACW), an investment company that will provide permanent equity capital to growing mid-market companies across sub-Saharan Africa.

ACW was launched by the Capitalworks Group, a leading independent alternative asset manager, and aims to raise US$300mn to invest across the continent. CDC has been joined as a cornerstone investor by South Africa’s Public Investment Corporation SOC Limited on behalf of its client, the South African Government Employees Pension Fund, Africa’s largest pension fund.

This is CDC’s second investment in a longer-term capital vehicle, following its announcement in August of a US$20mn commitment to Solon, a Sierra Leone-based holding company. It represents a commitment to find new ways to meet the different financing needs of the African businesses than can create jobs and deliver long-term growth.

ACW’s management team is led by experienced investors, Beth Mandel and Nana Sao, and Capitalworks Group has considerable experience in successfully growing businesses, such as CiplaQCIL, a pharmaceutical manufacturing company in Uganda, and Rhodes Food Group in South Africa. The ACW team takes a hands-on role in its portfolio companies, having representation on the boards of directors, playing a key role in significant decisions and helping access markets, finance and technology and building business networks.

ACW will take a generalist approach but may favour a few core sectors including healthcare, manufacturing and financial services. The new approach to investing in permanent equity vehicles complements CDC’s existing strategy of fund investing in Africa.

CDC’s Managing Director for Intermediate Equity, Murray Grant said:

"Many mid-sized African businesses struggle to raise the long-term capital they need to grow into the type of national and regional champions that bring growth and jobs. We’re backing Africa Capitalworks because they’ve shown that they can grow businesses over the long term and do it in a way that’s different to traditional private equity. We believe the longer holding period will enable businesses to grow and create jobs through multiple phases of value creation.”

Africa Capitalworks’ Joint Managing Partners, Beth Mandel and Nana Sao said:

“Africa Capitalworks has been purpose-built for SSA to deploy capital in a manner that achieves true partnership, high impact and high returns. CDC has played a critical role in the development of Africa Capitalworks, and we are delighted with their early and substantial support.”

For more information, please see here.

Media contacts

Rhyddid Carter: +44 (0)20 7963 4741 / +44(0) 7824 552 326

« Back to Member News

The #AVCAFocus webinar series provides the #AfricanPE industry with the opportunity to master best practices from r…

@bronwynnielsen Hello Bronwyn, I hope you are well. AVCA would like to send you an invitation letter to the 15th An…

NEW on the #AVCABlog: Africa is taking advantage of a new paradigm as it leads the rest of the world in…

Connect with LPs, GPs and key industry influencers at #AVCACon2018! Book a meeting room now:…

Latest in #AVCAMemberNews: Cepheus Growth Capital Partners reaches first close for its maiden fund. Read the full…