Duet sets fundraising target after first Africa deal

Duet Group, which in October formed a joint venture with TLG Capital to invest in Africa, has completed its first deal on the continent and has announced plans for a forthcoming $150m fundraising.

Duet Africa Private Equity – formed in October by Duet Group and TLG Capital – has completed its first deal in Africa, acquiring a stake in Nigerian health insurance provider Expatcare Health International for an undisclosed sum.

The investment has been made using a convertible instrument which will leave Duet with a majority stake in the business, the firm said. Duet executive Mambi Madzivire will relocate from London to Lagos, Nigeria to manage the Expatcare investment, the firm said. Law firm Latham & Watkins advised Duet on the deal.

Duet also announced plans for the Duet-TLG Growth Capital Fund, which will be launched next year with a $150 million target. Currently in pre-marketing, private placement memoranda are likely to be sent out early next year, according to a source close to the process. No placement agent has been mandated to assist with the fundraising, the source said.

Henry Gabay, chairman of Duet, said: “We are delighted to be working with the leading entrepreneurs in the African region. We have created a platform to ensure a dynamic and resourceful approach to investing in a region most investors find challenging. This is only the beginning in our focus and strategy for private equity in Africa.”

Private equity interest in Africa is building, albeit slowly, as firms consider the continent’s attractive demographics, abundant natural resources and macroeconomic factors including strong GDP growth. This year to date private equity groups have agreed deals totalling $1.7 billion in sub-Saharan Africa, according to data provider Dealogic.