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Mid Cap Private Equity Investments Across Africa

We are a lead innovator in mid-market private equity in Africa. For almost two decades, we have invested and evaluated transactions in over 25 emerging markets. On an aggregate basis, our first fund investments grew in value over 5 times and we are on track to have a similar performance in our existing fund, with our value already multiplying by 3 times since the fund’s inception in 2008 – the firm has closed over nine investments in 5 sectors, covering 6 countries. These successes have been achieved through a unique combination of “best-practice” investment expertise adapted to the African markets with an “on-the ground” approach.

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How We Succeed

Our approach to private equity is fundamentally simple as we only invest in companies with a clear and simple value proposition. 

We aim to generate liquidity for investors in the most efficient time possible. So, we focus on investment opportunities that are capable of generating attractive yields via dividends or debt service. Since investing in growth businesses requires constant re-investment, we seek to balance the growth with third-party funding, and cash flow generation to assure our fund investors a constant liquidity flow.

While we have an “eye” for value, we never compromise on the quality of the human assets. We seek to augment these assets with our financial expertise and financial engineering, along with a clear focus on governance, thereby pursuing a “developed market” approach to emerging market investing.

In general, our investee companies are at an inflexion point in their development, and we act as change catalysts for them. Musa investments can take many forms, including debt, equity and quasi-equity instruments.

Africa has no shortage of potential transactions, but our deal generation strategies and our network of business relationships provide us with a highly targeted source of proprietary investments, giving us an advantage in sourcing investments in sub-Saharan Africa.

Why we succeed

We are one of a limited number of private equity firms in Africa that have access to a full range of cross-regional opportunities. Our global reach positions us to help our portfolio companies source add-on acquisition opportunities, enter new markets, and outsource operations to reduce costs.

We align our interests with other stakeholders’ by putting our own capital at risk and corporate partnerships are a signature element of our private equity business. By investing alongside major corporations, we access their knowledge base, achieve synergies, and compete effectively. Our corporate partners have included France Telecom, Econet, MTN, Rural Housing Loan Fund, Industrial Development Corporation (IDC), ABSA Bank,International Finance Corporation (IFC), and Standard Bank.

We insist on having on-the-ground infrastructure. We team with knowledgeable local entrepreneurs and innovative organisations, supporting them with capital and, if necessary, matching them with the best global technical and financial partners.

We limit our active portfolio base to allow our senior team to become fully engaged in value creation. This involves optimising human capital with strategic insights, operational support at the executive level, and financial monitoring. We address issues relating to top-line growth, cost optimisation, efficient capital allocation and the other challenges and opportunities that arise during the life of an investment.

Often our portfolio management involves assisting our companies with fundraising, acquisitions, and financial reporting. In many cases Musa oversees the audit process.

Our focus is always on driving value-creating transformation of a business, providing consistent cash yields to investors in the near-term, and mid- to long-term capital appreciation.

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