ACA closes $570 million Private Equity fund
August 26, 2016 – African Capital Alliance (“ACA”) today announced that it has raised a total of approximately $570 million of committed capital for its fourth private equity fund, Capital Alliance Private Equity IV Limited (“CAPE IV” or the “Fund”). As a result, ACA has become the first West Africa-focused fund manager to raise over $1 billion in aggregate capital commitments, since its formation in 1997.
Over its nineteen-year history, ACA has built a strong and diverse network of investors across the world and CAPE IV has attracted a broad mix by type and geography. The Fund has received support from leading institutions, including public and corporate pension funds, sovereign wealth funds, funds of funds and development finance institutions, some of whom have supported ACA since its first fund, CAPE I.
Commenting on the outcome of the CAPE IV fundraising, Mr. Cyril Odu, CEO of ACA, said: “The success of our fundraising is a strong endorsement, by both our existing and new investors, of ACA’s position as a premier player in West Africa and of the long-term economic fundamentals of the region. About a third of our fund is already committed and we continue to find compelling opportunities to deploy capital in investments which offer significant resilience and favorable growth prospects.”
CAPE IV intends to continue the successful strategy of ACA’s previous funds, focusing on an attractive and diversified pipeline of deals across its target sectors including: Business Services, Energy, Fast Moving Consumer Goods (FMCG), Financial Services, and Telecommunications, Media & Technology (TMT). Among the Fund’s initial investments are Beloxxi industries Limited, a leading Nigerian biscuit manufacturing company, and Continental Reinsurance Limited, the largest private Pan-African re-insurer outside of South Africa.
About African Capital Alliance
ACA is a leading investment firm sponsoring funds and managing investments in West Africa. Since its formation in 1997, ACA has raised over $1 billion in aggregate capital commitments across four private equity funds and one real estate fund.
ACA has made more than 40 investments across a number of high-growth sectors, including Business Services, Energy, Fast Moving Consumer Goods (FMCG, Financial Services, and Telecommunications, Media & Technology (TMT). The firm also has a history of successfully exiting investments and delivering strong returns to its investors.
ACA invests in a leading Nigerian biscuit company
August 15, 2016 – An investment consortium made up of African Capital Alliance (ACA), 8 Miles and Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG) today announced an investment in Beloxxi Industries Limited (‘Beloxxi’ or ‘the Company’), a market leading Nigerian biscuit manufacturing company. The consortium has invested USD 80 million for a substantial minority stake to expand the capacity of Beloxxi, to address significant unmet demand and to grow its regional distribution presence. Additional details of the transaction have not been disclosed.
Nigeria’s biscuit sector has seen double digit growth and this is expected to continue, driven by population growth and increasing urbanisation coupled with the growing popularity of biscuits as a convenience snack.The growth in the sector is also a result of a relatively young population with 63% of the population, about 115 million people, below the age of 25 years.
Beloxxi is a market leader in Nigeria with significant market share and has one of the most popular and highest selling cream cracker brands in the market, with a reputation for high quality. It operates several production lines from its plant in Agbara, Ogun State and multiple warehouses across the country. The Company employs about 2,300 people and operates through a network of about 400 distributors. The Company has experienced growth rates in excess of 30% per annum in the last few years.
Commenting on the investment, Segun Adebanji, Principal & Head of FMCG at ACA, said: “We are excited to be investing in Beloxxi and collaborating with its Founder and CEO, Mr. Obi Ezeude.Beloxxi demonstrates the potential of Nigerian companies to manufacture enjoyable quality products on a large-scale while also addressing Africa’s critical challenge of employing young people.Alongside the other members of the consortium, we will leverage our expertise and relationships from over 17 years of investing in West Africa to assist Beloxxi in achieving its strategic vision. We look forward to being a part of a Nigerian manufacturing champion through our investment in Beloxxi.”
Obi Ezeude, CEO and Founder of Beloxxi, added: “I am very excited about the quality of investors we have attracted into Beloxxi as it aligns with our commitment to be the best in class in all our endeavours by adhering to global best practice standards. Our long term focus is to be one of the leading biscuit companies in the EMEA region. The completion of this funding process is the first of the many steps in the achievement of our objectives. The investment will enable us increase our capacity significantly and grow in both our domestic and export markets. The Beloxxi story has only just begun.“
About Beloxxi Industries Limited
Beloxxi Industries Limited is one of the leading cream crackers biscuit manufacturers in Nigeria. The company started operations in 1994 as a biscuit trading company and commenced its manufacturing operations in 2006 through its ultra-modern, fully integrated biscuit manufacturing plant in Ogun State, Nigeria. Beloxxi has about 2,300 employees and operates through a network of about 400 distributors across Nigeria.
About African Capital Alliance
African Capital Alliance (ACA) is a leading investment firm focused on Nigeria and the Sub-Saharan African region. Since its formation in 1997, ACA has achieved over $1 billion in aggregated capital commitments through four private equity funds and one real estate fund.
ACA has made more than 40 investments across a number of high-growth sectors, including oil and gas, power, TMT, financial services, FMCG and business services. It also has a history of successfully exiting investments and delivering strong returns to its investors.
ACA is currently investing out of its fourth private equity fund, Capital Alliance Private Equity IV Limited.
Onitsha Mall opens for business in Southeast Nigeria
April 14, 2016 – African Capital Alliance (ACA) today announced the opening of Onitsha Mall, the premier formal retail shopping center in Onitsha.
Onitsha Mall was developed through a public-private partnership arrangement made between ACA and the Anambra State Government and is built on a 40,000m2 site within a mixed-use precinct in the GRA of Onitsha. Other establishments in this precinct include a Park Inn by Radisson Hotel, a 1,500-person convention center, an office complex and high/medium income residential units.
The first class retail mall is anchored by South African retail giant, Shoprite, and provides 12,000m2 of net lettable space for a retail mix of health, fashion, food, beauty, sports equipment, electronics, entertainment, telecoms and banking. It also boasts of six local and international restaurants, central air-conditioning and 500 parking bays to ensure a comfortable and convenient shopping experience for consumers in Onitsha and its environs. The facility is managed by Broll Nigeria Limited.
Commenting on the opening, Mr. Obi Nwogugu of ACA stated: “Onitsha is a major center of commerce in Nigeria; it has the highest concentration of banking activity when compared to the rest of Anambra and Imo State combined, and it has the third highest number of mobile call volumes after Lagos and Abuja. The mall not only creates jobs and a tax base for the state, but it also improves the quality of life for residents of Onitsha and the surrounding towns.”
The mall was officially opened during a ribbon-cutting ceremony performed by His Excellency, the Executive Governor of Anambra State, Chief Willie Obiano, who thanked ACA for being a credible and capable partner in the development of the landmark mall, stating that it “enhanced the status of Onitsha as the epicenter for commerce in Nigeria.”
Onitsha Mall was funded through ACA’s first real estate fund, a $165 million private equity fund.
ACA invests in filmhouse cinemas and film one
November 1 2014 – African Capital Alliance (ACA) today announced its investments in Filmhouse Cinemas, the fastest growing cinema chain in Nigeria and Film One, its associated film production and distribution company.
Filmhouse opened its doors in December 2012 with the aim of delivering world class cinema experience to the Nigerian public. Backed by an experienced management team, the company quickly established itself as a key player in the cinema exhibition space, opening cinemas in key cities across Nigeria.
To further diversify its operations, and tap into another attractive segment of the film industry, the management team launched Film One, a distribution and production company, in 2014. Already, Film One has released the two highest grossing Nigerian blockbusters this year – ‘Half of a Yellow Sun’ and ‘October 1.’
Through its partnership with ACA, Filmhouse and Film One hope to scale their operations to become the leading mass media companies in Nigeria.
Speaking on Filmhouse and Film One’s growth prospects, ACA Partner Paul Kokoricha said “Despite Nigeria having one of the largest film industries in the world the cinema space is largely untapped. The world over, cinema exhibition and film distribution are key segments of the film industry and the main drivers of economic value in the sector. We are looking forward to partnering with the team to deliver on the promise of the sector.”
Mr. Kene Mkparu, co-founder and Managing Director of Filmhouse commented on the transaction, saying “We are delighted with Africa Capital Alliance’s investment in our strategic plans for cinema roll-out expansion, film distribution and production. With this investment we can scale up quickly and strengthen our position as an industry leader.We believe ACA brings valuable local and international expertise that will help grow our business.”
ACA is currently investing out of its third fund (CAPE III), a $400 million private equity fund.
Protea Hotel Select Ikeja opens its doors
August 2, 2014Â – Capital Alliance Property Investment Company (CAPIC) an ACA-managed fund, has announced the opening of Protea Hotel Select Ikeja. Protea Hotel Select Ikeja is the result of a partnership deal made between CAPIC and the Skye Shelter Fund, a real estate investment fund, to increase the availability of quality, affordable business accommodation in the country. The hotel also feeds into CAPIC’s wider strategy, which will see the additional launch of Protea Hotel Selects in Owerri and Takoradi, Ghana in 2015, to take advantage of the growing trend in real estate development across the West African region.
Protea Hotel Select Ikeja is strategically located in an under-served part of the Ikeja Central Business District in Alausa, which has no other branded hotel within a three mile radius. It is also conveniently located across the road from the Ikeja City Mall and the Lagos State Government’s Secretariat. Additionally, it is about 5 minutes away from the Oba Akran Industrial Area and 15 minutes away from the Murtala Muhammed International Airport.
With 117 fully equipped rooms, this international business hotel will cater to corporate travelers by providing a variety of room types with en-suite bathrooms, mini-bar fridges, satellite TV, high speed internet and tea/coffee making facilities. Its restaurant serves buffet breakfast, lunch and buffet dinner, with a strong focus on Continental and Nigeria Cuisine. Other hotel facilities include a 24-hour bar, a 50-delegate meeting room, ample parking, free Wi-Fi access and shuttle service. The hotel will be managed by Protea Hotel, the largest hotel operator in Africa and a member of the Marriott Group.
Commenting on the opening, Mr. Obi Nwogugu, the CAPIC Fund Manager stated: “We are excited to add Protea Hotel Select Ikeja to our chain of hotels; it complements our objective to develop hospitality infrastructure in under-served markets across Nigeria and West Africa and we are confident that it will meet the global standard of service and comfort demanded by our business travelers.” Speaking on the hotel management team, Mr. Patrick Ilodianya, the Managing Director of Skye Shelter Fund stated: “The partnership with Protea Hotel provides best practices in comfort, health and safety in our hotel and reinforces our commitment to consistently deliver international standards at the right price.”
ACA is currently investing out of its first real estate fund (CAPIC I), a $165 million private equity fund.