AfricInvest, a pan-African SME-focused private equity firm, together with Aureos Africa Fund and Swedfund, have agreed to sell their 37.3 percent collective stake in UAP Holding, an East African insurance company, to life insurance business Old Mutual Holdings.
The enterprise value was KES 14.2 billion (€140 million, $155 million), according to a statement. AfricInvest declined to comment on returns.
Nairobi-based UAP has 12 operating subsidiaries across the region including in Kenya, Uganda, Tanzania, South Sudan, Rwanda and DRC. Since its investment in UAP in 2012, AfricInvest, along with the other investors and in partnership with the local shareholders, has helped UAP to improve its governance and accelerate its regional expansion with new market entries in Rwanda, Tanzania and DRC, together enhancing its operations and resulting in a threefold increase in shareholder value over the period.
“We partner with local entrepreneurs to grow their businesses, help them to transform from leading local companies into regional champions, enhance governance, and then exit, taking into account the best interests of the company, our local partners and our own investors,” Skander Oueslati, a senior partner & co-head of AfricInvest’s Sub Sahara Africa business, said in the statement.
This is the fourth exit from AfricInvest’s Fund II. The firm will be keen to return capital to investors as it is currently in market attempting to raise €200 million for its AfricInvest’s Fund III. That fund held a first close of more than €154 million, last October.
The vehicle will focus on North, West and Eastern Africa. Target sectors will include manufacturing and agribusiness, retail, education, pharmaceuticals, financial services, packaging and telecoms. The firm is likely to wrap up fundraising before year end.