Earlier in the year, TPG, one of the world’s biggest private equity houses announced its entry into Africa, ready to invest $1 billion on the continent via a partnership with Sudanese billionaire Mo Ibrahim’s Satya Capital. As part of its commitment to the continent, the new Africa-focused PE fund has added the former president of the African Development Bank (AfDB) Donald Kaberuka to its team as senior adviser.
Kaberuka who headed the AfDB for 10 years showed great support for private-led initiatives as well as public-private partnerships throughout his tenure.
“He has a deeply held optimism about Africa’s future and the role of private investment in unlocking that opportunity — beliefs that underpin the TPG Growth and Satya partnership,” said Mo Ibrahim, chairman of Satya Capital.
In addition to the $1 billion investment by TPG, Satya will make $400 million available as the PE tie-up targets investments in sectors such as retail, healthcare and financial services.
An elated Kaberuka who was replaced by Nigerian Akinwunmi Adesina at AfDB in September affirms that “Private equity is transforming Africa.”
“I’m delighted to be joining TPG/Satya as it builds the next generation of African success stories,” he adds.
Private equity investment into Africa, as well as fund managers’ ability to raise capital for funds dedicated to the continent, have continued to increase. This is as Africa’s perceived attractiveness has risen dramatically over the past decade. According to African Private Equity and Venture Capital Association (AVCA) data, the aggregate deal value of completed African transactions in 2014 rose nearly 90 percent to $8.1 billion, with activity spread across a range of deal types.