Kasada Capital Management raises over US$500mn for new hospitality fund dedicated to Sub-Saharan Africa

26 Apr 2019

Sub-Saharan hospitality investment platform Kasada Capital Management has reached a first close on its maiden fund Kasada Hospitality Fund LP with equity commitments of over USD 500 million. This is in line with a first announcement disclosed in July 2018 by Katara Hospitality and Accor who are respectively contributing USD 350 million and USD 150 million. In a region which offers robust growth opportunities, the fund will target both greenfield and brownfield projects.

The hospitality market is currently one of the most promising and yet underserviced sectors in Sub-Saharan Africa where growing economies and emerging middle class are creating high-growth markets that are left largely untapped.

The first platform of its kind in Sub-Saharan Africa, Kasada Capital Management intends to bridge the gap between the local hospitality market players and international investors. The team is co-led by Olivier Granet (CEO and Managing Partner) a former CEO of AccorHotels Middle East & Africa and David Damiba (CIO and Managing Partner), a former partner at Helios Investment Partners. Olivier Granet has over 20 years of experience in the hospitality industry at Accor where he was last responsible for a portfolio of over 200 hotels consisting of 50 000 rooms across 30 countries. David Damiba has 25 years of experience in investing across the capital structure in developed and African markets including at Helios where he specialized in structured credit investments with equity upside. They will put in place a unique team of professionals combining world-class experience from the hospitality industry, private equity and financing sectors underpinned by track record in the African market.

Kasada believes its positive social impact is key to becoming the number one sustainable hospitality fund dedicated to Africa. Co-investments with local partners will support local job creation and further local business opportunities throughout the hospitality value chain, from investors to constructors and equipment suppliers.

On this initial closing, CEO Olivier Granet said “There is an incredible opportunity ahead to try out an innovative hospitality investment platform in the region. While in other parts of the world such initiatives are already thriving, they do not exist with critical size and integrated structure in Sub-Saharan Africa. The time is now for bold strategies to be implemented. Thanks to Accor and Katara’s support we benefit from a unique competitive advantage supported by a strong portfolio of brands enhancing our ability to raise debt efficiently from local banks and international financial institutions. This is the best structure to address the needs of the region, develop attractive products and reach critical mass quickly to take a leadership position. I believe that our team of professionals combining experts from project financing to hotel management all with a solid local knowledge is exceptionally well placed to succeed.”

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