Actis, a global emerging market firm, has acquired a significant minority stake in Tekkie Town, a South African-based sports and lifestyle shoe retailer, for $65 million.
Tekkie Town, which was founded in 2001, currently has over 260 stores across South Africa. Actis sees growth opportunities in South Africa’s retail sector which it believes is underpinned by the demands of brand and lifestyle-conscious African middle class consumers. To date the firm has invested $1.6 billion in consumer the sector.
The investment comes a day after Actis committed $100 million to create a new buy and build insurance brokerage platform in Brazil, called IT’sSEG. IT’sSEG has acquired three existing companies in the market: Torres Benefícios, a corporate benefits broker; Barela, a retail-focused benefits broker; and Raduan, which covers both corporate and retail benefits insurance distribution.
Together these businesses give the platform a reach of more than 400,000 people, with a total of approximately $400 million in annual premiums. IT’sSEG, which aims to acquire additional businesses in time, focuses on the benefits market for corporate, medium and small businesses, including products such as corporate employee health plans.
“The Brazilian insurance brokerage sector offers enormous potential for growth and consolidation, reaching $7 billion in revenue in 2013 and growing by 8 percent a year in real terms,” Chu Kong, co-head of Actis’s Latin American activities said.
The firm is currently investing its fourth flagship buyout fund, which closed on $1.7 billion in October last year.