Capital Alliance Private Equity IV (CAPE IV)

West Africa,Africa Financial services, Food and agriculture, Others

Africa Capital Alliance (ACA) is an investment firm that specialises in growth equity, buyout, and turnaround investments, and risk capital.  The Nigeria-based firm, which was founded in 1997, focuses on investments in sub-Saharan Africa. To date ACA has raised four generalist private equity funds (CAPE I, II, III and IV) and one real estate fund (CAPIC). CDC has played an anchor role in all five funds.

Capital Alliance Private Equity IV (CAPE IV) is a $570 million fund focused on the healthcare, energy, power, infrastructure, agriculture, agribusiness, telecomms, media, technology, FMCG, and financial services sectors in West Africa. 

It focuses primarily on Nigeria, but also in neighboring countries such as Ghana, Cote d’Ivoire, Gabon, and Cameroon.

Our investment

In 2015, CDC invested $50 million into CAPE IV as an anchor investor.   Our investment will support the growth of West African businesses in key sectors.

Expected impact

Many of Africa's key business sectors remain undeveloped due to a lack of finance, challenging infrastructure and poor regulatory frameworks.

Our investment in the CAPE IV fund enables the fund manager to provide much-needed capital to support the expansion of firms in undeveloped sectors, including healthcare, financial services and telecomms.  This, in turn, will boost infrastructure investment, job creation, and the development of business skills that will support wider economic expansion across West Africa.  

The fund manager walso provides strategic and technical expertise to investee companies to boost growth and expansion.

To date (across the current and prior funds) the firm has invested in Nigeria’s leading telecomms provider, MTN Nigeria Communications, the Union Bank of Nigeria, and Continental Reinsurance, the largest private pan-African reinsurer outside of South Africa.

Environmental and social aspects

We are working closely with the fund manager to improve its existing Environmental and Social Management System, including delivering an action plan.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, West Africa
Countries

For funds, the countries listed here are those the fund has invested in so far.

:
Nigeria
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Financial services, Food and agriculture, Others
Website:
https://www.acagp.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
African Capital Alliance
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
February 2015
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$50m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Vertex Energy/First Hydrocarbon Nigeria Co Ltd

First Hydrocarbon Nigeria Company Limited is an indigenous Exploration & Production company in Nigeria that was established by UK-listed Afren in direct response to the Nigerian government’s policy to increase indigenous participation.

View investment details

Nigeria Africa, West Africa Others December 2010 Active
ACA B Holdings Limited/Union Bank

ACA B Holdings proveds banking and other financial services to a wide range of corporate and retail customers, predominantly in Nigeria.

View investment details

Nigeria Africa, West Africa Financial services December 2011 Active
Continental Reinsurance Plc

Continental Reinsurance is a reinsurance company offering life and non-life products, and is based in Nigeria. It is present across Africa, with offices in Lagos, Douala, Abidjan and Nairobi.

View investment details

Nigeria Africa, West Africa Financial services February 2016 Active
Niger Delta Exploration & Production Plc

Niger Delta Exploration & Production plc is a leading Nigerian independent exploration and production company with operations focused on the upstream oil and gas sector. It is the only Nigerian indigenous independent company to supply natural gas to the Shell-operated Nigeria Liquefied Natural Gas export plan at Bonny in Nigeria.

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Nigeria Africa, West Africa Others June 2016 Active
Beloxxi Industries Limited

Beloxxi is a leading biscuit manufacturer in Nigeria and also has export sales in Ghana.

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Nigeria Africa, West Africa Food and agriculture August 2016 Active
Petra Ghana Africa, West Africa Financial services February 2018 Active
Ashwah Holdings Limited Nigeria Africa, West Africa Manufacturing June 2018 Active