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AFRICAN AGRICULTURE FUND'S INVESTMENT CRITERIA

The African Agriculture Fund (AAF), a US Dollar based food fund with a 10-year life, achieved a first closing at US$ 151 million and is targeting a final close of US$ 300 million.

Coverage: Pan-Africa, with a focus on sub-Saharan Africa.

Sectors: Full spectrum of businesses touching the food production value chain, including all major cereals, oils, proteins and their derivative products, from primary production, services, storage, fertilisers, seeds, supplies through to processing and branded consumer goods. Excludes non-food agriculture such as forestry.

Investment strategy: To build regional platform businesses that increase capacity through commercial and smallholder schemes, seeking to re-integrate the food production value chain to enhance domestic and regional food security.

Investment approach: Majority or significant minority stakes, board representation and other meaningful shareholder rights.

Investment type: Management buy-outs and buy-ins, expansions, acquisitions, refinancings and start-up new ventures with proven partners.

Criteria for AAF to invest:

• equity investment requirement of US$ 5 million to US$ 30 million;
• experienced management team with a compelling vision for the business and a willingness to collaborate with a financial investor;
• proven financial, operational track record and potential for future growth;
• commitment to transparency, proven sustainable industry competitive advantages; and
• ability to achieve a profitable liquidity event in the medium term.

Deal team: Duncan Owen, Senoir Managing Partner, worked at Unilever for 18 years before turning around and disposing of CDC Capital Partners’ agricultural portfolio comprising over 10 companies across eight African countries and employing 28,000 people. Stuart Bradley, Senior Partner, has a 15-year track record in African private equity. Valentine Chitalu, Phatisa Chairman, is a main board director of CDC, MTN (Zambia) and SABMiller (Zambia) and previously privatised over 240 businesses in Zambia as head of the Zambian Privatisation Agency. Our Deal Partners, Sean Moolenschot and Anders Einarsson combined have 30-years’ experience in private equity.The deal team includes  Paul Wythe who was an agri finance manager in Lonrho, CDC and Finlays, Peter MacSporran with 30 years of hands on farm management experience, Colin Watson with 20 years of agri business development in Africa and Charles Zouzoua, who has 17-years commercial mangement experience and an extensive business network in West Africa.

The entire Phatisa team is located in Africa (Mauritius, Kenya, South Africa, Zambia and Ghana) and spends a considerable amount of time developing relationships with strategic partners in all countries where the Fund is active.

SME subsidiary fund: The AAF has established a SME Fund, initially US$ 30 million (target size US$ 100 million) managed independently by Databank, called the AAF SME Fund. Investing up to US$ 4 million in any portfolio company.

Technical Assistance Facility (TAF): Up to US$ 500,000 available per portfolio company for SME technical and development of outgrower schemes.

AAF investment submission portal: If you or your company has a business venture that meets the strict investment criteria, please complete and submit the one-page AAF Funding Application Form available in either MSWORD or PDF format to aafinvestmentproposal@phatisa.com. Submit information on core business activities, invesment required (US$ equivalent), purpose of funding and contact details. Our Phatisa deal team is looking forward to reading your proposal and will be in contact in the near future.

CONTACT DETAIL

Anders Einarsson Deal Partner
Email anderseinarsson@phatisa.com

Sean Moolenschot Deal Partner
Email seanmoolenschot@phatisa.com