Carlyle Says It May Make Sub-Saharan Deals Early Next Yearby
Africa fund considering investments in five more companies
Targeting banking, consumers, manufacturing, data processing
Carlyle Group LP, the world’s second-largest manager of investment alternatives to stocks and bonds, said it may announce new purchases for its sub-Saharan Africa fund early next year as it forecasts the region will grow faster than all other areas except India and China.
“We’re looking at companies in Nigeria, South Africa, Mozambique, Zambia and Kenya as well as some pan-African businesses,” Marlon Chigwende, manager of the $698 million African fund, said by phone from London on Monday. “It’s a very busy time, but this year-end might be a little too soon for us to announce anything.”
Carlyle is targeting banking, consumer goods, manufacturing and business processing to add investments in five more companies from the four it currently holds, Chigwende said. He declined to give more details because the information is sensitive. Growth in Sub-Saharan Africa economies next year and greater stability in their currencies starting in the second half of 2016 will spark more private-equity deals, he said.
The International Monetary Fund projects expansion in sub-Saharan Africa will be 4.3 percent in 2016, compared with 6.4 percent in emerging and developing Asian nations.
The fund advised commodity trader Traxys Sarl, which it acquired last year, to expand by buying South African trading company Metmar Ltd., Chigwende said. It also holds stakes in Tiger Automotive Ltd. in South Africa, Mozambican trucking company J&J Africa and Lagos-based Diamond Bank Plc.
The fund sold its minority stake in Dar es Salaam-based agricultural supply chain Export Trading Group to management in July after three years because it fetched an attractive price and the timing was right, he said.