Investors update: December 2 2022

TRG to acquire African asset manager Ethos Private Equity

Highlights

• Ethos Private Equity a leading alternative asset management firm in Africa is to be acquired by The Rohatyn Group (TRG), a specialized global asset management firm focused on investment solutions in emerging markets and real assets.
• Combining forces with Ethos positions TRG to deliver a larger array of investment solutions to the partners of both firms. Since 1984 Ethos has made over 150 investments supporting South African and sub-Saharan businesses. 
• With over 20 years of experience, investment teams at TRG offer capabilities across public equities, corporate and sovereign debt, private markets, forestry, agriculture, and infrastructure.

Source: ABC

Our Takeaway

Africa is a diverse investment destination with significant potential opportunities in private markets, real assets, and public markets, for which local expertise and experience are paramount to achieving successful outcomes. The acquisition of Ethos expands TRG’s capabilities and local presence during a volatile period in financial markets, giving investors access to one of the largest and fastest-growing regions in the world. 

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SA-based 4Di Capital reach second close of $25m seed fund

Highlights

• South African early-stage venture capital firm 4Di Capital has announced the second closing of its new $25 million seed fund – created in partnership with DotExe Ventures in Mauritius – with an undisclosed raise from Mauritian-based conglomerate IBL Group.
• 4Di Capital is an early-stage technology VC fund manager based in Cape Town, which specializes in the Southern and Eastern Africa region. 
• Led by a team of entrepreneurs with personal experience in building companies, 4Di is one of the most established and regarded brands in the local venture capital market, having been formed in 2009.

Source: Disrupt Africa

Our Takeaway

4Di Capital’s second closing of its fund follows an initial close of $8 million from the SA SME Fund, with capital targeting seed and post-seed stage startups in South Africa, East Africa, and the continent at large. In particular, the fund will focus on businesses exhibiting continental or global ambitions and will remain open to new investors until the final close in early 2023.

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Kenya’s beauty startup Uncover raises $1m for Africa expansion

Highlights

• Kenya-based Uncover Skincare, which offers tailored beauty and skin care products via data-led manufacturing aligned with the needs of the modern African woman, has raised $1 million in seed funding.
• The startup recently introduced a new range of skin products, with plans to launch more next year. Its products are sold through its online platform, on marketplaces, and in the stores of partner brands.
• Backed by the new funding, Uncover is scaling its operations in Kenya and expanding to Nigeria in January.

Source: TechCrunch

Our Takeaway

Africa’s beauty and personal care market is growing accelerated by its growing young and fashion-conscious population, increasing spending power, and urbanization. The market’s potential has in recent years attracted major brands, with Fenty Beauty by Rihanna and LVMH being the latest entrants. Niche local brands are also emerging to offer tailored beauty and skin care products like Uncover, which has raised a total of $1.225 million since its launch in 2020.