SADC Private Equity Fund LP
The SADC Private Equity Fund (the “Fund”) is a$150 million private equity fund organized to make investments in SADC-domiciled companies. SADC refers to the 16 Southern African States comprising the Southern African Development Council (“SCAC”). Founded in 1992, SADC is an inter-governmental organization headquartered in Botswana. Its goal is to further the socio-economic, political and security cooperation among its 16-member states and foster regional integration to achieve peace, stability, and wealth. The 16-member States include Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia, and Zimbabwe. The SADC Countries in the aggregate represent c. 50% of Sub-Saharan Africa’s $1.76 trillion GDP, and 30% of its 1.15 billion population. SADC’s median age is 25.5 and has an urbanization rate twice that of India and China. SADC’s internet and wireless penetration are 28% and 75% of the population, respectively. The African Continental Free Trade Area (AfCFTA”) was signed by 54 of 55 AU Member States in 2021. Although genuine (if incomplete) it is an achievement. It was designed to create a single continental market for goods and services and anticipated to catalyze both foreign direct investment (“FDI”), and foreign institutional investment (“FII) into the region. In the aggregate these favorable macroeconomic indicators are anticipated to spur middle income growth and accelerate consumer purchasing power, improve corporate governance and transparency, and ignite foreign investment into the region.
The Fund will target to invest 10-12 SADC domiciled, SME-sized companies with recurring revenues and cash flow. Targeted companies will be SADC country champions capable of expanding to become SADC regional champions. Target companies will be capable of embracing digital transformation expansion strategies and export-sales oriented. The Fund will provide invest in both publicly listed and private-held companies, private equity secondaries, and privatizations. The Fund will take an active role, where it will lead and/or co-lead all investments, and in all cases have board of director representation. Investments will be structured as minority-control, and structured as co-investments with strategic, financial, and multi-national commercial companies as co-investors. The Fund will systematically integrate measurable ESG impact into its investment process. Targeted sectors include TMT, Agri-tech, infrastructure-enabling, transportation and logistics, financial services, mining & energy, infrastructure ancillaries and logistics, healthcare, tourism, sustainable mining, light industry, renewable energy, and consumer packaged goods.
The Fund’s is being offered to both SADC Region and Global institutional investors. The Fund’s First Close will primarily consist of SADC institutional investors along with SADC country inter-governmental support. The Fund has been declared with Government of Zimbabwe Prescribed Asset and National Project Status, as well as a Victoria Falls Free Trade Zone approved Investment Vehicle. The Fund anticipates reaching similar arrangements with other SADC Member States. Pursuant to the First Close, the Fund will be offered to global institutional investors, including DFIs, pension funds, family offices, endowments and foundations and sovereign wealth funds.
Key to the Fund's structure and management is that it is independently managed and with strictly adhere to ILPA, ESG, and IASB best practices, which will be systematically integrated into all the Fund’s investment and reporting activities.
Immediately following the Fund’s Initial Close target for March 31, 2022, the Manager is prepared to capitalize on its proprietary deal pipeline.
Fund is structured as a Cayman Island-registered Fund. The Fund Sponsor, Manager and Anchor Investor is CBZ Holdings Limited, a Zimbabwe Stock Exchange listed financial services institution with subsidiary operations in banking, insurance, property, Agri-business, asset management, micro-finance, investment banking, and digital. CBZ’s current SADAC footprint includes Zimbabwe, South Africa, Botswana, Mozambique, and Malawi. The Manager has appointed Gerken Capital Associates, a San Francisco and Geneva-based alternative asset fund manager and advisor to serve as the Advisor to the Fund. The Advisor will be responsible of overseeing the Fund’s day-to-day investment activities. The Fund Advisor’s investment team consists of an independent and dedicated staff of investment professional based in San Francisco, Geneva, and Johannesburg.