March 16, 2016

Pan-African asset manager, STANLIB and founders of the African food and agribusiness-focused private equity fund, Agri-Vie Investment Fund, have partnered to launch EXEO Capital.

Commenting on the partnership, Herman Marais, managing partner at Exeo Capital and Agri-Vie co-founder said, “We have found a strategic partner in STANLIB who shares our investment philosophy and will enable us to accelerate the growth and strategic diversification of our Africa private equity business, while retaining ownership and management control as an independent investment manager.”

Following on the success of the $100 million Agri-Vie fund I, the new private equity partnership is expecting to launch Agri-Vie Fund II in the second quarter of 2016 bringing total funds under management to $275 million. The partnership will focus on taking a preferred equity position of between 25% and 75% in investment opportunities in select sectors that are closely tied-in to growth trends within sub-Saharan Africa, including food and agribusiness, logistics, healthcare, education, financial services, and media – providing both parties with the opportunity to broaden their alternative investment options across additional sectors and geographies.

 “…we believe in the long term potential of the continent and have on the ground presence in 10 African countries,” said Seelan Gobalsamy, chief executive officer, STANLIB. “We will leverage off the excellent track record and depth of experience in EXEO Capital’s management team to offer our customers portfolio diversification and access to investment growth in the rest of Africa.”

Agri-Vie Fund II is expecting to be oversubscribed on its first capitalization target and is expecting a final close of between $150 million and $200 million, according to its website.

Fifty-five percent of the first fund has been invested in a portfolio of twelve investments across sub-Saharan Africa, while the remaining 45% has been committed to food and agribusiness companies across South Africa, while 75% of the second fund is set to be invested in the rest of Africa, according to Patrick Mamathuba, chief investment officer, alternative investments at STANLIB.

“This transaction is an ideal fit that will enable us to continue delivering on our investment promise to customers. It strengthens our existing capabilities and introduces new ones where we believe there will be strong future demand based on global trends,” says Mamathuba.