The ten largest Africa-based private equity fund managers with an investment focus on healthcare have raised over $7 billion in the last 10 years.
The state of Africa’s healthcare has captured news headlines around the world. With the continent being home to over a billion people, and individual countries growing rapidly, there needs to be a strong economic response to the increased pressures the population will place on the already strained healthcare systems. The private equity opportunity to be found in the market is substantial and will likely play an important role in the development of the healthcare sector across a number of African nations.
Below we give you a snapshot of the above ten private equity fund managers.
Ethos is a private equity fund manager based in South Africa. Ethos' predominant focus is on making investments in South Africa and selectively in other sub-Saharan economies, with a primary focus on Nigeria, Ghana, Kenya, Uganda and Tanzania. The firm specialises in control acquisitions using the funds it manages, and invests in a variety of transaction types and sizes.
The fund was founded in 1994 and is part of Integra Group, an investment and financial services company based in Tunisia. Uniquely positioned as one of the most experienced private equity investors on the continent, AfricInvest has dedicated investment teams focused on North Africa and Sub-Saharan Africa. Since 1994, AfricInvest has invested in 125 companies across 24 African countries in a variety of high growth sectors and maintains a broad network of high quality executives across Africa, offering extensive expertise in key growth industries, including financial services, agribusiness, consumer/retail, education and healthcare.
Founded in 2006, Helion Ventures Partners is a $605 Million early to mid-stage venture fund, investing in technology-powered and consumer service businesses in sectors like Outsourcing, Internet, Mobile, Technology Products, Retail Services, Healthcare, Education and Financial Services. The fund’s mission is “Partnering with entrepreneurs to build world-class companies”. Helion is proud to have partnered with over sixty companies
EFG is a private equity and venture capital arm of EFG-Hermes Holding. It specializes in seed, startup, early venture, leveraged buyouts, growth capital, transition capital, distressed, turnaround, financial restructuring capital, and PIPE/take private transactions. The experienced investment professionals of the Private Equity team have USD 0.8 billion in funds under management and are focused on attractive investment opportunities that capitalise on the particular strengths of the region.
Bait is a private equity arm of Brait SA specializing in direct and secondary direct investments. The firm does not invest in startups. It specializes in later stage, industry consolidation, buyouts of private and stock exchange-listed companies and entrepreneurs-partnering transactions, and growth capital investments. Within entrepreneurs-partnering transactions, the firm prefers to invest in businesses that are positioned to take advantage of organic growth and acquisition opportunities, including platforms for build-up strategies.
The fund is a proven leader in the area of private equity, alternative assets and related advisory services. The company was founded in 2004 and raised South Africa’s largest private equity fund in terms of third party local commitments. It has an established team which ranks amongst the largest and most experienced in the industry. Metier has a strong track record in private equity investing and selective M&A advice that confirms its leadership status.Its principals have a track record spanning more than 80 principal transactions delivering consistent outperformance over two decades
ACA is a leading independent investment firm focusing on Nigeria and the broader West African region. Formed in 1997, ACA has, to date, obtained aggregate capital commitments of over $750m across several funds raised from its offices in Lagos, Nigeria. ACA has a proven track record of successfully exiting investments and delivering strong returns to investors. This private equity firm specializes in growth capital, equity, equity-related investments, and buyout investments in small and medium sized companies.
Makalani was established in 2005 to perform the activities of managing the R2.5 billion mezzanine asset portfolio of Makalani Holdings Ltd (“Fund I”). These activities included deal origination, mezzanine and debt structuring as well as portfolio management. Fund I is fully invested and is in a process of returning funds to its investors. Makalani is in the final stages of raising capital for a second mezzanine fund (“Fund II”) of R1 billion from a range of South African and/or foreign investors.
Avigo is a private equity firm specializing in growth capital, middle market, buyouts, and acquisition financing. The firm prefers to invest in industrial, industrial manufacturing, industrial services, engineering, infrastructure, education, media, healthcare, and rural businesses. The firm typically invests between $2 million and $20 million including follow-on investments in companies with annual revenues above $15 million.
Beltone is a private equity and venture capital investment arm of Beltone Financial specializing in growth capital investments and recapitalizations. It seeks to invest in consumer-focused businesses, including energy, utilities, housing, healthcare, pharmaceuticals, financial services, and education. The firm invests in companies based in Egypt and the Middle East. It prefers to invest between E£25 million ($3.48 million) and E£500 million ($69.74 million). Beltone Private Equity was founded in 2006 and is based in Cairo, Egypt
Overall, the outlook for the African healthcare niche of the private equity market is promising, particularly if the fundraising momentum seen in 2015 so far continues.
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