A crisis of confidence

TOUGH TIMES

Headline confidence indicators from Deloitte's survey show South African GPs have a realistic outlook.
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ANGOLA'S FIRST PRIVATE EQUITY FUND TARGETS $100M
Angola Capital Partners, a joint venture between Angolan commercial bank Banco Africano de Investimento (BAI) and Norwegian development institution Norfund, is raising Angola's first ever private equity fund with a target size of $100 million. Fundo de Investimento Privado de Angola (FIPA) will invest in small and medium-sized local businesses in all sectors apart from oil, investing up to $10 million per deal. Norfund and BAI have committed $15 million between them.

ADB MAKES FIRST CLEANTECH COMMITMENT—
The African Development Bank has approved its first cleantech-focused investment with a ZAR100 million (€8.7 million; $12.4 million) commitment to the Evolution One Fund. Evolution One, which has already raised $54 million from LPs including the World Bank, is the first specialised private equity fund focusing on the development of clean energy and sustainable technologies across the south of Africa in an effort to fight climate change.

—AND BACKS HEALTHCARE VEHICLE
A fund designed to invest in medical facilities across Africa has held a first close on $57 million. The vehicle, to be managed by emerging markets-focused private equity firm Aureos Capital, has garnered commitments in a first round of equity raising from development finance institutions the IFC, the African Development Bank and DEG (Deutsche Investitionsund Entwicklungsgesellschaft), as well as the charitable organisation the Gates Foundation. The total equity target for the fund is between $100 million and $120 million.

DE BEERS BOSS LAMENTS LIQUIDITY DROUGHT
In a speech given at the Africa Day celebrations at the African Union headquarters in Addis Ababa, Nicky Oppenheim, chairman of diamond mining company De Beers, highlighted the importance of private equity investment in the continent amid turbulent economic conditions. “The lack of liquidity in global markets will hit cash-strapped African markets hardest, especially where we need private equity to invest in infrastructure and other essential projects,” he said.

BRAIT BUYS BUILDMAX STAKE—
Brait, the South African private equity firm, acquired a 24 percent stake in Johannesburg-listed construction firm Buildmax. The investment by Brait Fund IV follows its investment theme of gaining exposure to infrastructure-related businesses, the firm said. Buildmax supplies services, equipment and materials to the mining and construction industries and is in an “aggressive expansion phanse”.

— BUT SEES PROFITS DROP
Brait suffered a drop in operating profits for the year ending March 2009 of 21 percent on the previous reporting period to ZAR237 million (€21 million; $29 million), but Antony Ball, chief executive officer, reported a positive returns across its private equity funds due to strong portfolio company operation performance.