Showing posts with label Funds. Show all posts
Showing posts with label Funds. Show all posts

Saturday, January 16, 2010

Standard Chartered Private Equity Invests $47.5m in Seven Energy

Standard Chartered Private Equity Limited has announced that it has invested $47.5m to acquire a minority stake in Seven Energy, a leading Nigerian gas exploration and development company. Seven Energy was formed in 2007 and is focused on the provision of gas to leading industrial firms in Nigeria.

Standard Chartered’s investment will aid in the development of Seven Energy’s business and toughen its competitive positioning. The use of funds will provide a much needed spur for the company to provide to Nigeria’s growing energy needs.

Monday, March 23, 2009

Call for higher education support fund

Writer: Karen MacGregor
University World News

In Africa, Sixteen African ministers attending a preparatory meeting for the Unesco World Conference on Higher Education, to be held in Paris in July, called for improved financing of universities and a support fund to strengthen training and research in key areas. The ministers also want improved governance and quality assurance, and diversification of programmes to enable the sector to meet a wider range of needs, according to a conference statement circulated last week.

Africa's Regional Conference on Higher Education, or CRESA, was held in Dakar from 10 to 13 November last year and was organised by Unesco's Regional Office for Education in Africa, in partnership with the government of Senegal. The theme was "New Dynamics on Higher Education and Research: Strategies for change and development".

There were 241 participants from 27 African countries including two prime ministers, 16 higher education ministers, 23 heads of universities and a range of international organisations including Unesco, the African Union, EU, Association of African Universities, Association for the Development of Education in Africa and World Bank.

Following a meeting held during the CRESA conference, the 16 ministers called for more efficient policies to support national and international cooperation, to boost the revitalisation of higher education in Africa.

They urged governments and partners to increase spending on higher education, expand the involvement of women and prioritise science and technology for Africa's development. A Support Fund for Higher Education was proposed, to bolster efforts to expand and improve the sector and to develop training and research in key areas like science and technology.

The ministers said good governance in higher education should be strengthened to achieve greater autonomy, transparency and accountability in management. Diversification of training programmes was needed along with efficient quality assurance mechanisms that would provide a basis for harmonising qualifications.

South African Minister of Education Naledi Pandor called on African states to ensure the autonomy of higher education institutions so they could fully perform their role of creating and disseminating knowledge at the service of an African renaissance.

The aim of the Dakar regional conference was to bring higher education decision-makers, stakeholders and partners together to provide Africa with some shared higher education benchmarks and produce guidelines for the 2009 world conference. The meeting reviewed progress made in the past decade and formulated strategies for the future.

Chair of the CRESA organising committee, Professor Ahmadou Lamine Ndiaye, said considerable improvements had been made in higher education in several areas, including access, equity - especially greater involvement of women - and good governance.

The report said there had been more awareness of the role that should be played by knowledge as the driving force of development. It said the will to reform higher education systems to achieve improvements in relevance and in quality, particularly by establishing monitoring and evaluation, quality assurance and accreditation mechanisms was also more evident.

Efforts to diversify provision and structures as well as sources of financing and to improve links between higher education, the state and private sector had occurred while increasing stress had been placed on information and communication technologies. Sub-regional and regional networks had been created to strengthen inter-African cooperation, exchange of experiences and harmonisation of policies.

But the stock-taking also revealed numerous challenges, said the conference report. One was that access to higher education remained generally very low and Africa was far from achieving the critical mass of skilled people needed to secure its development. The higher education participation rate fluctuated around 5% to 7% and was aggravated by a fairly low success rate, particularly in the first cycle of most universities.

In many countries there was persistent mismatch between the content of training programmes and needs of the market - reflected by high rates of graduate unemployment in some key economic sectors that woefully lacked qualified personnel. An imbalance also existed between numbers of students in the arts and humanities and those in science, technology and vocational streams - especially among women.

Further challenges were lack of reliable statistical data to inform policy and building an African higher education community, as well as the need to construct coherent education systems from pre-school to higher education and the inclusion of private education sas a fully-fledged component with the same demands as public education.

The conference reached conclusions in a number of areas, including: access; relevance, efficiency and effectiveness; quality assurance; research and innovation; partnerships and cooperation; creation of an African Higher Education Area; and funding.

Africa needed to increase and broaden student access to higher education with financial support for students from poor and marginalised communities and greater representation of women across broad fields of study, participants at the conference decided.

There was a call for a diverse range of institutions such as research-intensive universities, undergraduate universities, polytechnics, teacher training colleges and rural institutions. Also, private sector participation and open and distance learning should be encouraged, "with appropriate quality assurance mechanisms in place".

In terms of relevance, efficiency and effectiveness, the conference concluded that institutions should be supported to serve the priorities and needs of Africa's development through socio-culturally relevant curricula. According to the conference report:

"Development plans should match graduate output with national human resource needs in order to minimise graduate unemployment." Further, there should be technical, vocational and entrepreneurship training to prepare graduates for the world of work.

African indigenous knowledge should be included in curricula and disseminated widely, and values of democracy, sustainable development, peace, conflict prevention and resolution as well as ethical values, behaviours and attitudes should be "inculcated in students and staff".

The conference called for governance and management of institutions to be strengthened in ways conducive to "greater autonomy, transparency and accountability", for ICTs and open and distance learning to be used more widely, and for credible information systems and statistical databases to enable evidence-based planning and decision-making.

The meeting concluded that sub-regional and regional quality assurance networks should be established "to promote cooperation among African experts and common frames of reference for standards-setting and monitoring", that regulatory mechanisms for cross-border provision should be developed, and that capacity to deliver quality assurance should be strengthened.

Institutional and human capacity to generate quality research should also be strengthened through funding, training and collaboration with well-established researchers in and outside Africa. Also, quality documentary resources should be established, research and development should be promoted and rewarded - especially that targeting Africa's development problems - and innovation incubators and science parks should be created.

The report stated, that north-south cooperation should be based on strong structures and sustainable frameworks, research-driven cooperation should tackle shared regional cross-border challenges, and cooperation and partnerships should be mutually beneficial and structured to discourage the brain drain while strengthening links with the African Diaspora.

The conference called for the creation of an African Higher Education Area and regional centres of excellence to facilitate the exchange of experiences and expertise, regional student and staff mobility, joint degrees and mutual recognition of qualifications. African language teaching should be strengthened "to promote communication and regional integration".

Finally, the report said there should be a national commitment to fund higher education adequately with African governments giving priority to the sector and allocating more resources to it, while cost-sharing or cost-recovery as well as the diversification of funding sources should be encouraged.

"An African Higher Education Trust Fund should be established to supplement the efforts of African governments and institutions to expand and strengthen higher education institutions."

The conclusions of the conference helped to define a vision for, and the role and challenges facing, higher education, said the report. They would enable higher education and states "to make choices, opt for orientations and design plans of action for the development of post-secondary education in Africa in the years ahead".

Thursday, February 12, 2009

Can you make money in African infrastructure?


Brian Myerson, joint chairman of PME Infrastructure Managers, says you can, and he's raised a $180m fund to prove it

Brian Myerson is a director of PME African Infrastructure Opportunities and joint chairman of PME Infrstructure Managers Limited, which will mange the funds of PME Afraican Infrastructure Opportunities. He is also CEO of Pinnacle Capital Group (www.principalcapital.com), which he founded in November 2004. Pinnacle Capital Group specialises in alternative investment management and is one of four joint venture partners in PME Infrastructure Managers.

In 1993, Myerson co-founded Active Value and was a pioneer in actvist investing in the UK, Continental Europe and South Africa. He has also been on the boards of several listed UK companies.

Once described as one of the City’s "most feared corporate raiders", Myerson has turned his activist investor mindset to African infrastructure through the creation of PME African Infrastructure Opportunities, an AIM-listed investment fund.
"Infrastructure is literally top of every African government official’s agenda at the moment," says Myerson.

He believes the current environment is perfect for private equity investment in infrastructure due to a number of factors coming into play at the same time. First, the worldwide boom in demand for mineral resources is a fantastic opportunity for Africa. But to fully benefit Africa needs the mines and supporting infrastructure - such as roads, railways and ports - to get the stuff out of the ground and shipped to places such as India and China.
Second, peace has taken hold and democracy is spreading across large parts of Africa, significantly improving the investment climate. At the same time, African governments are starting to embrace capitalism. They are desperate for inward investment and going out of their way to bring down regulatory barriers. Finally, South Africa and many other African countries have experienced extended periods of economic growth but infrastructure development has not kept up.

"Just being in Africa and knowing people in the investment banking industry means I’m being shown potential deals all the time," says Myerson. "People are desperately looking for equity investments in infrastructure-related projects and that’s why we put this fund together."

Read More..

Wednesday, February 11, 2009

South Africa's Treasury will provide electricity utility Eskom with loan guarantees of 175.97 billion rand

CAPE TOWN (Reuters) - South Africa's Treasury will provide electricity utility Eskom with loan guarantees of 175.97 billion rand over the next 5 years to help it raise funds for spending requirements.

The Treasury said in its 2009 Budget Review, released on Wednesday, that the guarantees were in addition to a 60 billion rand, three-year direct loan to the company announced last year.

Eskom , which is battling to meet growing demand, plans to spend 343 billion rand over five years to boost capacity but a global credit crisis had raised borrowing costs making it different for the company to raise finance.

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RAISING FUNDS FOR THE SMART & SERIOUS ENTREPRENEUR

We're expecting $400,000 in revenue this year and considering seeking outside capital for the first time. What do investors usually want in terms of percentage of ownership and rate of return?
The answer, in two words: a lot. Which makes sense, because the investors are taking a lot of risk. Out of any 10 investments, half will fail completely. Of the remaining five, two will break even and two will return a couple of times the investment. The profit needs to come from the last company, which means that every one them has to have the potential of being a home run.

What's a home run? In an angel's ideal world, an equity investment of $100,00 would turn into $1 million to $3 million in five to seven years. Angels won't complain about a lower return, however, if they can exit more quickly.

You may have to give away a large stake to get the money you need. Whereas a tech company with your level of revenue might be valued at $4 million to $5 million, a toffee maker probably is worth from $1 million to $2 million. If an angel estimates that your company is worth $1 million, then gives you $250,000, the investor will get a 20 percent stake. That's because the size of the stake is determined by the postmoney valuation of the company - in this example, $1 million plus the $250,000 investment. If you can show that sales are growing rapidly, you may have some leverage to negotiate a higher valuation. But may be not. Consumer products is a risky sector; even if your toffee is already on grocery store shelves, a larger company could drop its prices and drive you out.

Don't want to give up a large chunk of your company, only to see it sold off? You could approach friends and family members instead. Unlike a professional investor, Grandma probably can't tell you how to find a great new VP of marketing. On the other hand, she is much less likely to demand a full-ratchet anti-dilution provision. And there's something else to keep in mind. Like VCs, angels are increasingly asking for their shares to come in the form of participating preferred stock, which ranks higher than common stock. In an exit, your angels will receive the face value of their original investment plus any accrued dividends (usually worth about 8 percent a year) before you or any friends-and-family investors receive a cent. then if there's any money left over, the angels share in the rest of the pie. If the pie is big enough for all to share, great. If not? Well, you're in for an uncomfortable conversation with Grandma

This Blog Post was adapted from " Tough questions, smart answers ASK Inc." from the November 2008 issue of INC. Magazine.

Monday, February 9, 2009

AllTech Ventures Management Adding Value beyond Capital to Entrepreneur's Project

Good initiative to provide financial, technical and managerial support to ensure long-term success of businesses or entrepreneur's project that will ultimately provide exceptional returns for both the entrepreneur and investors.

AllTech Ventures Management is the Allegiance Technologies Limited (a subsidiary of Steersman Enterprises, Inc.) vehicle for entrepreneurship development for technology creators, and venture creation services and resources for entrepreneurs committed to bridging the gap between technical ideas and viable companies.

AllTech partner with entrepreneurs to build leading evolutionary technology companies. Founders face significant challenges today in planning, staffing, launching, and financing new ventures. AllTech understand the gap that exists between great ideas and sustainable growth companies. AllTech Ventures Management provides extensive services and resources designed to turn great ideas into scalable enterprises. Portfolio companies receive:

• Access to proven funding, team-building, and customer networks
• Hands-on consultation from our experienced venture staff
• Technical expertise, to support product development, from one of the region’s leading research institutions
• Valuable infrastructure, such as advanced computer and biotechnology labs

The AllTech team is drawn from top start-ups, high ranked corporations, and world-class universities. AllTech Ventures Management professionals have an established record of excellence in the tasks they have dedicated themselves to — from academics to operating businesses.

AllTech Ventures Management draws upon the start-up, corporate, venture capital and management consulting experience of its founders to foster successful entrepreneurship and the management of technological innovation.

AllTech Ventures Management venture building activities includes:

VentureAccelerator Program (VA)
VA is a program open to Entrepreneurs committed to creating new companies based on Allegiance Technologies innovations. Once registered into the program,
VA company founders receive intense, hands-on assistance with a range of new business processes, including market validation, business planning, staffing and initial funding through grants and/or equity investment.

Technology Advancement Program (TAP)
TAP is a venture incubator that partners with entrepreneurs to build early-stage companies. TAP expedites the maturation of young firms by providing extensive hands-on business support from experienced and entrepreneurial staff, access to funding sources, technical expertise and turn-key infrastructure.

The Technology Advancement Program (TAP) staff is comprised of seasoned veterans of technology startups and venture capital firms who will provide:

• business advice and support
• product planning
• project management
• program management
• market intelligence
• introductions
• access to funding
• other critical assistance that can accelerate the growth of your technology venture.

AllTech Venture Creation programs provide to entrepreneurs in the emerging markets of Africa. We seek opportunities in multiple industries including wireless, digital media, software and service companies.

Submit business plan: bizplan@steersmanenterprises.com

Unleashing ideas with venture capital

There are many Nigerians with fantastic ideas that require capital to start or grow their existing businesses. Accessing the needed money from banks or other financial institutions is usually difficult not because all the ideas lack credit but there are certain factors that the lenders contend with it. In addition to funds, many people with ideas also need a partner to work with.

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Friday, February 6, 2009

UBS to start Private Equity Investing

UBS Global Asset Management is planning to start a private equity investment division before year-end as an offshoot of its Infrastructure Asset Management business. The firm closed its flagship UBS International Infrastructure Fund at $1.5 billion with commitments from institutional investors globally. UBS is planning to commence a second international fund next year and is now marketing a Middle East and North Africa-focused infrastructure strategy. The firm is also looking to invest in Chinese and Latin American infrastructure later next year.

Monday, February 2, 2009

World Bank Grants Nigeria $150 million Agricultural Loan

The Board of the World Bank last week in Abuja, Nigeria’s capital, approved an International Development Association (IDA) credit of $150 million (N21 billion) for Commercial Agriculture Development Project (CADP) in Nigeria. The IDA credit, which is payable in 40 years with a moratorium of 10 years, has a service charge of 0.75 per cent and it is interest-free.

The CADP is designed to strengthen agricultural production systems as well as facilitate access to markets for targeted value chains among small and medium scale commercial farmers in the five participating states in the country. The beneficiary states are Cross River, Enugu, Lagos, Kaduna , and Kano.

The CADP, which will be implemented over a five-year period, starting from April 16, 2009 and closing December 31, 2014, has two components: Agricultural Production and Commercialisation and Rural Infrastructure.

EOI for Sustainable Forestry Fund for Sub-Saharan Africa

CDC Group plc ("CDC"), the UK government-owned fund of funds, is seeking preliminary proposals from fund managers for the formation and management of a commercial fund that will invest primarily in sustainable forestry in Sub-Saharan Africa.

CDC anticipates providing up to US$100m to the selected fund, to be supplemented by additional capital from sponsors or private investors.

Download press release: EOI for Sustainable Forestry Fund for Sub-Saharan Africa

N500m private equity fund to be float by BGL

BGL Plc has planned to float a N500m private equity fund, which will be used to improve activities and take advantage of the various opportunities in the markets where the company operates.

In the coming months, the company would introduce three funds into the financial market. The funds, which included the BGL Infrastructure Fund, BGL Mutual Fund, Real Estate Fund.

Friday, January 30, 2009

Mining Week Deals

This week Albidon (ALD), the mining group working on the Munali nickel project in Zambia, reached an in-principle agreement for up to US$26 million in funding from Pacific Road Resources Funds (PRRF), a private equity investment fund specialising in investing in mining projects worldwide.

Blackthorn Resources (BRL) noted that it had been granted renewal of the New Order Prospecting Rights over the Mokopane Project in the Limpopo Province of South Africa.

Coal of Africa (COAL) secured a deal with Transnet Freight Rail that gives it rail allocation to transport 1 million tonnes per annum (mtpa) of coal to the Matola dry bulk terminal.


Tuesday, January 27, 2009

African private equity funds will struggle in fundraising through 2009

African private equity funds will struggle in fundraising through 2009 as investors have withdrawn from the market, says Rod Evison, a managing director at UK government-backed, emerging markets-focused firm CDC.

Evison predicts that African funds launched in the second half of 2008 will struggle to reach their targets due to the current withdrawal of international investors from the market.

Gross domestic product growth in South Africa in 2009 is likely to be between 2-3 per cent, well below the 5 per cent level that was sighted in 2007.

In Nigeria in 2009, growth is expected to remain around 6 per cent.