Independent alternative asset manager Capitalworks Group has launched Africa Capitalworks, an investment company that will deploy permanent equity capital in midmarket companies in strategically selected sectors across sub-Saharan Africa, but excluding South Africa.
Africa Capitalworks aims to raise $300-million and has already secured early support and substantial investment, including from UK development finance institution, the CDC, as well as from South Africa’s Public Investment Corporation (PIC) on behalf of its client, the South African Government Employees Pension Fund.
“Both CDC and PIC recognise the significant imbalance between the supply of and demand for long-term capital in the rapidly growing and developing sub-Saharan African economies and the midmarket companies within them and share Africa Capitalworks’ thesis that longer-term capital is one of the best ways to address this imbalance,” Capitalworks noted in a statement published on Thursday.
Africa Capitalworks is led by joint managing partners Beth Mandel and Nana Sao.
The Africa Capitalworks team will have representation on the boards of directors and key committees of its portfolio companies and will maintain direct, frequent contact with management teams and play a key role in significant strategic, financial and commercial decisions.
Further, the team will assist its investee companies to enhance business practices; access markets, finance and technology; improve efficiencies; and build business networks and global relationships.