An independent investment platform has raised $500m to invest in hospitality in Africa

Sub-Saharan hospitality investment platform Kasada Capital Management has reached a first close on its maiden fund Kasada Hospitality Fund LP with equity commitments of over $500 million. This is in line with a first announcement disclosed in July 2018 by Katara Hospitality and Accor who are contributing $350 million and $150 million respectively.

In a region which offers robust growth opportunities, especially in sectors like hospitality, the new fund will target both greenfield and brownfield projects.

The hospitality market is currently one of the most promising and yet underserviced sectors in Sub-Saharan Africa where growing economies and emerging middle class are creating high-growth markets that are left largely untapped.

Led by experienced professionals in investment management and hospitality, Kasada Capital Management intends to bridge the gap between the local hospitality market players and international investors. By co-investing with local partners, Kasada will support local job creation and further local business opportunities throughout the hospitality value chain, from investors to constructors and equipment suppliers.

Olivier Granet, a former CEO of AccorHotels Middle East & Africa is the CEO and Managing Partner of Kasada Capital Management. On the initial closing, he said that there is an incredible opportunity ahead to try out an innovative hospitality investment platform in the region.

“While in other parts of the world such initiatives are already thriving, they do not exist with critical size and integrated structure in Sub-Saharan Africa. The time is now for bold strategies to be implemented,” Granet said.

Granet explained that Kasada benefits from a unique competitive advantage supported by a strong portfolio of brands enhancing the company’s ability to raise debt efficiently from local banks and international financial institutions.

“This is the best structure to address the needs of the region, develop attractive products and reach critical mass quickly to take a leadership position,” he added.