December 14, 2020

By Lynda Kiernan, Global AgInvesting Media

EXEO Capital was launched in March 2016 through a 50/50 joint venture between the founders of the South African private equity fund, Agri-Vie, and pan-African asset manager, STANLIB, as an entity through which to manage private equity vehicles formed to invest in strategically selected sectors.

The partnership planned to take an equity position of between 25 and 75 percent in opportunities that are closely tied to growth trends within sub-Saharan Africa, broadening investment opportunities and geographies for both parties, while the launch of EXEO Capital also added private equity to STANLIB’s alternatives offerings platform, which already included Infrastructure, High Yield Credit, and Director Property Investment.

The launch of EXEO Capital’s Agri-Vie Fund II followed upon the heels of the success of the $100 million Agri-Vie Fund I, which focused on mid-market growth investments in the sub-Saharan market, and deployed across 12 companies across South Africa, Mozambique, Tanzania, Kenya, Rwanda, Uganda, and Ethiopia.

Over the past 12 years EXEO Capital has completed 25 transactions across East and Southern Africa. By June 2019 Fund II announced its final close at $146 million, outpacing Fund I by 50 percent, and bringing total assets under management to $250 million. 

“Our task as long-term investors is to find established businesses with resilient and vertically integrated business models that can scale up relatively fast,” said Herman Marais, managing partner at EXEO Capital, in 2019 upon the close of Fund II.  “Our approach to finding these companies is on-the-ground networking. We look for founders and management who are willing to partner with us and who are at risk with us, who maintain the highest ethical standards, are strong on sustainability principles, and have a strong social license. These are the companies that are more successful over the longer term.”

The latest addition to the portfolio of EXEO Capital’s Agri-Vie Fund II is Kenya-based Glacier Producer – the maker of the country’s renowned Dairyland branded ice cream and chocolate products. 

“We are delighted to have advised on this transaction for our client, Glacier,” said Swathi Rao, associate vice president at I&M Burbidge Capital, lead advisor to Glacier in the transaction. “It is a fantastic business with really exciting brands and products. The partnership ethos and shared values between Glacier and EXEO were evident throughout the transaction.”

Incorporated in 1979, Glacier has grown into a highly recognized brand with a strong market presence across Tanzania, Uganda, South Sudan, Ethiopia, and Rwanda. The company is FSSC certified, one of the strictest food safety certifications given to companies that meet a high level of food safety management systems benchmarks, and has received numerous awards, including the SOMA Award for its top rank for Consumer Products and the Superbrands East Africa status for brand leadership across East Africa.

“This investment is a great addition to our growing food and agribusiness portfolio on the continent,” said Paul Nguru, partner, EXEO Capital. “Our partner, Glacier, has laid a solid foundation, which combined with EXEO Capital’s sector knowledge, strategic insights, and extensive pan-African networks, will steer the company towards continued sustainable growth.”

Glacier joins an existing portfolio that includes:

~ TerraSan, a South African fishing and aquaculture investment group with capital commitments in the aquaculture, pelagic fishing, fish, fishmeal, and fish oil processing industries.

~ Marginpar, a joint Agri-Vie and Norfund investment in a floriculture group that consolidated the floriculture business of Marginpar BV in the Netherlands the Marginpar Farms in Ethiopia, Kariki Limited, a summer flower grower in Kenya, and Carzan Flowers in Kenya.

~ Capital Fisheries, a Zambian cold chain food distributor specializing in animal proteins.

~ Jumbo Brands, a South African beverage and snack company, and,

~ PPTL, a regional producer of woven polymer-based extruded products for the agriculture and cement industries.

Sunil Shah and Minesh Shah, directors of Glacier, added,  “We are delighted to partner with EXEO Capital, who share our vision of continuing to grow the leading and trusted brand. Glacier will benefit greatly from EXEO’s sector expertise, as the company enters its next phase of growth.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.