US private equity firm TPG and London-based Satya Capital have launched a joint initiative targeting $1 billion of private equity investments in Africa, Satya Capital managing director Tsega Gebreyes told Private Equity International.
The capital for the investments will come from the TPG Growth fund and Satya Capital’s assets under management, she said. She described the partnership as a platform rather than a fund.
The two funds will invest jointly, with Satya expected to contribute around 30 percent of the capital in any transaction, depending on factors including the investment, the timing, the size, and any co-investors, Gebreyes said.
The investment period is open-ended, but is likely to be around five years, she said. Exits could include an initial public offering on European and African markets, strategic sales and management buy-outs. The partnership will invest in businesses where it can identify opportunities to scale and build a world class business where management shares the same ambition, she said.
Satya, an investment firm founded by prominent Sudanese businessman Mo Ibrahim, specialises in Africa where it targets deals of $20 million to $150 million, according to a statement. The platform will focus on growth investments in health care, TMT, consumer and financial services sectors.
Satya’s last investments were in 2013 into IT outsourcing company Mara Ison and call centre business Ison BPO, both based in Nairobi, according to its website.
The TPG-Satya partnership is currently negotiating one transaction having already completed due diligence, and are conducting due diligence on a number of others, Gebreyes said. “The pipeline is strong,” she noted.
TPG Growth pursues mid-market and growth equity investments in the US and emerging markets including China, India, Brazil and Southeast Asia. It has $7 billion of commitments and assets under management.