Media & News

SAVCA Newsletter |13 November 2014

Dear SAVCA Members and Friends,

News from SAVCA: Lively deal flows | 2015 SAVCA Industry Conference | Tax relief for VC

Wrapping up deals in time for Christmas

The past two weeks have seen SAVCA members close a number of deals. In one of the biggest deal announcements in this region this year, emerging market player Actis moved to secure a 42.5% stake in Tekkie Town for $65 million (R715 million). Actis will provide the R1.5 billion shoe retailer with the capital and expertise needed for continent-wide expansion.

Mezzanine funder Vantage Capital came out with two deals announcements in quick succession. The company said that it had provided $6.7 million (R77 million) for the acquisition of preferred equity facilities in AfriSam, the largest BEE-controlled South African construction materials company. Then a week later, the firm announced that it had concluded a transaction with Ghanaian telecoms provider Surfline Communications to provide $30 million in expansion capital. The investment could see Surfline’s 4G LTE network ramp up to be up to 10 times faster than the average speeds offered by existing operators.

Earlier in October, Abraaj Group announced its acquisition of a majority stake in Liberty Star Consumer Holdings, one of South Africa’s largest food and personal care manufacturers. Abraaj completed the buyout of Libstar from its existing shareholders including Metier, Old Mutual Private Equity, Development Partners International and Lereko. This transaction demonstrates Abraaj’s focus on investment opportunities arising from African consumer growth.

We can expect an uptick in deals in the coming year and, aptly, deal making will come under the spotlight at SAVCA’s annual Private Equity in Southern Africa conference, scheduled for 12-13 February 2015, at Spier, Stellenbosch. The early-bird discount expires on 23 November and on-site accommodation is limited. Visit to read more.

SAVCA is putting together a number of publications to be presented at the conference. In line with the conference theme Investing for Growth, Investing for Good the SAVCA Case Study Compendium will showcase portfolio companies from diverse industries and fund managers. This compilation, which will be the first of its kind by SAVCA, will provide tangible examples of the private equity industry’s notable contribution to sustainable development. We are gathering material for The Evolution of Private Equity in Southern Africa, a supplement that will tell the story of our industry’s progress over the past two to three decades. Read more about advertising opportunities in these two publications, which will receive focused coverage at the conference.

In this week’s newsletter we speak to Emile Du Toit, SAVCA’s outgoing chairman, and also Head of Infrastructure Investments at Harith General Partners. He gives his views on the industry and some of the changes that he has seen during his six-year tenure on the SAVCA board. We would like to thank Emile for his immense contribution to our organisation and to the industry.

Keep us updated with your news and visit the SAVCA website to find new research, industry updates and upcoming events.


Erika van der Merwe


Taxation Laws Amendment Bill: Section 12J – minimum threshold

A recent change to section 12J of the Taxation Laws Amendment Bill is that VCC’s are now able to now invest in companies with gross assets up to R50 million post-investment. This is up from the previous R 20mill threshold. Anther welcome amendment passed is that if an investor holds investments in a Section 12J company for a minimum of 5 years the investment will be subject to tax recoupment.

COMESA Competition Commission

KPMG published its views on the COMESA Competition Commission 2014 Merger Assessment Guidelines. These guidelines provide much-needed clarity on the interpretation of the COMESA Competition Regulations concerning merger control. Although South Africa is not a COMESA Member State, the COMESA Competition Regulations apply to all firms operating in COMESA Member States.


Exit experiences

In partnership with EY, SAVCA presents the third in a six-part video series dedicated to the exits experiences of Southern African private equity fund managers. This video features Richard Flett from Horizon Equity discussing an exits case study and providing thoughtful input on how to navigate a successful private equity exit.

Remuneration survey

Thanks to all members who participated in the annual SAVCA private equity remuneration survey. The number of participants has almost doubled compared with 2013. Those who did not participate but would like to see a copy of the report can purchase this from the SAVCA office at R15 000 plus vat.

SAVCA Events

SAVCA Annual Conference: LP Masterclass

Date:       12 February 2015
Time:      12:00pm-5:00pm
Venue:    Spier, Stellenbosch
RSVP:     The conference organiser, Karin Diederichs, on or +27 (0)83 270 9219

Click here for further information

SAVCA Annual Conference: Members Reception

Date:        12 February 2015
Time:       5:00pm-7.30pm
Venue:     Spier, Stellenbosch
RSVP:      The conference organiser, Karin Diederichs, on or +27 (0)83 270 9219

Click here for further information

SAVCA Annual Conference

Date:       13 February 2015
Time:       All day conference
Venue:     Spier, Stellenbosch
RSVP:     Booking is essential: The conference organiser, Karin Diederichs, on or +27-83-2709219

Click here for further information or visit the conference website on

Keep up to date with all our events and courses by regularly visiting the SAVCA online calendar

Industry Events

Africa Investment Exchange: Energy 

Date:        24-25 November 2014
Venue:     RSA House, London

Sponsored by DLA Piper and FMO, Africa Investment Exchange: Energy is a unique opportunity for investors, including private equity firms, venture capitalists, family offices, impact investors, foundations and institutional investors to meet Africa’s renewable and power sector developers, professional service providers, entrepreneurs and regional firms in a trusted environment. The two-day meeting is organised by CbI, the parent company of African Energy. Proceedings will be held under the Chatham House Rule and structured round a series of interactive panel-led sessions. SAVCA members can benefit from an exclusive 35% discount – contact to register or for the latest agenda and list of participants

Africa Inbound 2014
Mergermarket will be hosting its annual Africa Inbound forum, once again taking place in London. This year’s event will feature senior management figures from major international corporates who will share their experiences of conducting M&A in Africa. Expert speakers will also review the African deal market and provide in-depth insight in to the future investment pipeline for 2015.
25 November 2014
The Waldorf Hilton, London
Click here for a full line-up of speakers or to download the agenda                                                               
Register your place here

SuperReturn Africa 2014
With registrations running way ahead of bookings at this time last year, SuperReturn Africa is set to see a record turn-out of over 550 attendees at its first ever South African event! 120+ local and international LPs are already registered to attend including: Public Investment Corporation, Grinnell College, Public Service Pensions Fund, Gatsby Charitable Foundation, Los Angeles County Employees Retirement Association, GIC Special Investments, The Church Pension Fund and many more.
Dates:      2 December – 4 December 2014
Venue:     The Westin, Cape Town
SAVCA members can benefit from an exclusive 20% discount. Please quote VIP code: FKR2356SAVCA3 when registering. Click here for more information or to register online

Asian Financial Forum | Asia: Sustainable Development in a World of Change
Date:        19-20 January 2015
Venue:      Hong Kong

The Asian Financial Forum (AFF) brings together some of the most influential members of the global financial and business communities each January to discuss developments and trends in the dynamic markets of Asia.

Deal Flow Matchmaking session (20 January 2015)

The forum features a unique deal-sourcing and matchmaking session jointly organized by the Hong Kong Venture Capital and Private Equity Association and the HKTDC. One-on-one meetings are arranged between sources of funds and sources of deals, enabling participants to meet with potential business partners from around the world.

Click here for further information

SAVCA in the news

Private equity takes the stage I Moneyweb 
Speak to most advisers in the M&A industry and they will tell you that private equity is currently the most active space. Columnist Marylou Greig takes a look at some of the recent deal announcements. According to the KPMG and SAVCA Venture Capital and Private Equity Industry Performance Survey, released in June, the growing investor appetite for private equity saw the asset class expand by 17% last year to reach R162.2 billion in funds under management, thanks to successful fund raising programmes.

SAVCA members in the news

Actis buys Tekkie Town stake and expects expansion I BDlive
Actis has acquired a significant minority stake in a shoe retailer in SA for $65m. The acquisition will give the retailer, Tekkie Town, the capital and expertise needed to expand broadly in Southern Africa and possibly in West and East Africa.

Vantage provides funding for the acquisition of preferred equity facilities in AfriSam I Press release
Leading mezzanine funder Vantage Capital announced that it has provided R77 million of funding for the acquisition of preferred equity facilities in a Pembani-owned SPV that holds 30% of the ordinary equity and PIK notes in AfriSam.AfriSam is the largest black-controlled South African building and construction materials company.

Vantage’s Fund II commits $30 million to Surfline Communications I Press release
Vantage Mezzanine announced it had concluded a transaction with Surfline Communications to provide $30 million of expansion capital to the company together with a fund co-investor. The funds will be used for the on-going expansion of Surfline’s 4G LTE network in Ghana.

Risk, returns and resilience across markets I African Review
International Housing Solutions was at represented at Private Equity in Africa 2014 and indicated that international investor appetite remains strong for investment in the housing markets of Africa. The firm is in the process of raising a second round of funding for investment in affordable housing. Risks,

 eFront and Methys extend their partnership I Press release 
eFront, a software provider of financial solutions for managing alternative investments, is pleased to announce that it has extended its partnership with international technology consulting firm, Methys, naming it the integrator for all eFront solutions in Africa.

Industry news and updates

The ‘Africa rising’ narrative rings true despite headlines I BDlive
Even against the additional headwinds of falling commodity prices and the prospect of higher US interest rates, funds active in sub-Saharan Africa insist they still see a compelling growth story, driven by an uptick in regional trade, growing investment and a bulging middle class — the basis of the “Africa Rising” thesis.

Nigerian multi-millionaire Issam Darwish raises $2.6 Billion for telecom towers I Forbes
IHS Towers, a Nigerian phone tower company founded by Lebanese-Nigerian businessman Issam Darwish, has raised $2 billion in equity and $600 million in debt in one of the largest equity fundraising exercises by an African company in recent times.

Private equity vies for $10 Billion in cement assets I WSJ
Private-equity firms are jostling to acquire more than $10 billion of cement facilities being sold as part of the merger of two large European companies, reflecting the dearth of buyout deals available in the region. The sale of the cement assets are a precondition to winning antitrust approval of a $50-billion merger between French cement giant Lafarge SA and Swiss rival Holcim Ltd.

Deutsche Telekom sets up 500 million euro venture capital fund I Reuters
Deutsche Telekom is to set up a 500 million euro ($620.4 million) fund for technology ventures, giving the company more scope to invest in venture capital and innovation.

Job Opportunities

Investment Analyst | Takura Capital I Harare

Zimbabwe based Takura Capital Partners seeks a suitably qualified and experienced person to join Takura’s investment team as an analyst. The analyst will work closely with Takura’s senior investment professionals and provide support in investment analysis, research, investment process management, transaction structuring, deal execution and portfolio management.

Advertising with SAVCA

SAVCA welcomes the opportunity to work with members and stakeholders in promoting the Southern African private equity and venture capital industry. The organisation seeks creative ways of doing so, including through the marketing member firms’ activities. Should you wish to find out more about various marketing and advertising opportunities with SAVCA, contact the office on Please also drop us a line if you would like to advertise an opening at your firm on our online jobs portal.