New Delhi, May 12 -- Sango Capital, a South Africa-based investment management firm that makes direct and fund investments across the continent and has deployed over $1 billion across companies so far, has acquired more than $120 million in net asset value (NAV) from an institutional investor rebalancing its global portfolio.
The transaction involved the underwriting of 30 investments across four African funds. The acquired portfolio spans financial services, consumer and FMCG, infrastructure, and light manufacturing sectors.
Sango said the acquisition will help generate liquidity for the original investor while creating value for its own limited partners (LPs).
"This transaction reflects everything Sango has built over 15 years: the analytical depth to underwrite complex African portfolios, the relationships to source off-market opportunities, the structuring expertise to create solutions for LPs and GPs navigating liquidity, and the local GP relationships to enable smooth asset transfers," said co-founder and partner Richard Okello.
The Johannesburg-based firm, which recently closed a continuation vehicle and acquired the remaining assets from its inaugural fund, financed the transaction using its own capital while also raising additional capital from a group of commercial investors, including first-time Africa allocators.
"Global institutional investors have long cited liquidity and exit concerns around investing in Africa. That is changing as the ecosystem matures," said co-founder and partner Charles Mwebeiha. "This landmark transaction is one of several that the team at Sango is working on to accelerate the delivery of liquidity and portfolio solutions for investors at scale."
Founded in 2011 by former Bridgewater Associates partner Okello and Mwebeiha, Sango Capital initially focussed on primary private equity. It has since expanded into secondary private equity, primary and secondary venture capital, and private credit.
The firm's portfolio includes direct investments in over 50 companies, private equity funds, and co-investments. It has completed more than 79 exits.
Notable direct investments include the acquisition of Sotipapier, Tunisia's leading paper packaging manufacturer, from SPE Capital in 2022. The firm has also invested in Nigeria-based grocery retailer Sundry Markets alongside Tana Africa Capital.
Last year, Sango Capital completed a secondary transaction in Anglophone West Africa-focussed Synergy Capital Managers' $166-million Fund II, acquiring the majority of the limited partners' interest. Previously, it had acquired a majority LP stake in Synergy's $103-million Fund I through another secondary transaction.
The firm also manages the Sango Strategic Equity Vehicle (SSEV), an evergreen fund that invests in larger, upper-middle-market businesses with substantial growth potential. The SSEV fund has a longer holding period compared to Sango's flagship PE funds.
Published by HT Digital Content Services with permission from VC Circle.