Alterra Capital Partners, founded in 2020, raised $140 million in an initial phase towards a $500 million fund for Africa&#8217;s growth. Influential investors support diverse sectors, including technology and telecommunications. Analysts emphasize its impact on economic development and infrastructure challenges in nations like Nigeria, proposing solutions for increased internet penetration. 



Alterra Capital Partners, a private equity firm founded in 2020 by former Carlyle Group executives, Genevieve Sangudi, Eric Kump, Idris Mohammed and Bruce Steen, has raised $140 million in the initial phase of a $500 million fund.



This fund is poised to fuel growth in various sectors across Africa, including telecommunications, technology, logistics, healthcare, consumer, and retail. Influential investors such as Nigerian billionaire Aliko Dangote, along with Carlyle founders David Rubenstein and Bill Conway are reportedly backing this initiative.



Joining the league of investors are prominent entities like Norfund AS, Standard Bank Group Ltd., International Finance Corp., Deutsche Investitions- und Entwicklungsgesellschaft GmbH from Germany, and Allianz SE’s AfricaGrow fund.



According to information available on its website, the Africa-focused private equity firm based in Johannesburg, South Africa, leverages over 100 years of combined private equity experience, originating from the blending of Carlyle Africa and Emerging Capital Partners, which has already invested more than $2 billion in 23 companies across the continent.


<div class="wp-block-image">
<figure class="alignleft size-large is-resized"><img loading="lazy" decoding="async" width="683" height="1024" src="https://cms.forbesafrica.com/wp-content/uploads/2023/10/Genevieve-Sangudi-image-supplied-683x1024.jpg" alt="" class="wp-image-59808" style="aspect-ratio:0.6669921875;width:347px;height:auto" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/10/Genevieve-Sangudi-image-supplied-683x1024.jpg 683w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/Genevieve-Sangudi-image-supplied-200x300.jpg 200w, https://cms.forbesafrica.com/wp-content/uploads/2023/10/Genevieve-Sangudi-image-supplied.jpg 750w" sizes="(max-width: 683px) 100vw, 683px" /><figcaption class="wp-element-caption">Genevieve Sangudi; image supplied</figcaption></figure></div>


Kolawole Oyebola, an analyst, highlights the significance of the fund&#8217;s strategy, emphasizing the diverse sectors it targets as pivotal for the continent&#8217;s economic growth.



&#8220;This successful initial fundraising is a testament to the confidence investors place in the potential of Africa&#8217;s dynamic and rapidly evolving landscape,&#8221; states Oyebola to FORBES AFRICA. &#8220;The fund&#8217;s comprehensive approach, encompassing telecommunications, technology, logistics, healthcare, consumer, and retail sectors, reflects a keen understanding of the multifaceted opportunities present in the African markets.&#8221;



Africa has increasingly become a focal point for global investors seeking high-growth opportunities. The fund&#8217;s primary goal is to support and catalyze innovation in key sectors, contributing to job creation, economic development, and the enhancement of essential services across the continent.



Oyebola further emphasizes the potential impact of the fund on Africa&#8217;s technology ecosystem, stating,



&#8220;Investments in technology and telecommunications are especially crucial, given their potential to leapfrog traditional development stages, bringing about rapid advancements in connectivity and digital infrastructure.&#8221;



The fund&#8217;s $500 million target signifies a substantial commitment to fueling transformative projects in Africa. Oyebola urges continued attention to the evolving investment landscape on the continent, stating, &#8220;As Africa continues to assert itself as a hub for innovation and economic opportunity, strategic investments like these will play a pivotal role in shaping its future trajectory.&#8221;



Technology enthusiast Destiny Young sharing his insights with FORBES AFRICA questions the potential benefits for his home country, Nigeria, emphasizing the critical role of infrastructure in enabling internet penetration.



&#8220;In investing in telecommunications and technology, it&#8217;s crucial to understand that it encompasses the entire infrastructure supporting internet access,&#8221; remarks Young.



Citing Surfshark data, he highlights Nigeria&#8217;s 109th global ranking with an index 44 times lower than the global average, underscoring challenges in internet access and quality.



Young emphasizes the impact of underfunding on Africa&#8217;s telecommunications sector, referencing a report by the South African Institute of International Affairs (SAIIA), which identified the continent&#8217;s Information and Communication Technology (ICT) deficit as a hindrance to development.



Noting Nigeria&#8217;s struggle to increase internet penetration amid funding deficits, he states, &#8220;Increasing internet penetration in developing economies requires a multi-faceted approach.&#8221;



Providing solutions, Young suggests measures for Nigeria, including promoting public-private partnerships, reducing mobile device and internet costs, enhancing digital literacy, encouraging local content creation, improving regulatory frameworks, attracting foreign investment, promoting innovation, and fostering collaboration among stakeholders.



He stresses the importance of ensuring private equity investments align with the long-term interests of the country and its citizens.



In the midst of global economic challenges, multinational tech consultant Napa Onwusah underscores the timeliness of Alterra&#8217;s focus on key African sectors, stating, &#8220;Considering the decline in startup funding and unique investors, targeted investments are crucial in this landscape.&#8221;



Onwusah commends Alterra&#8217;s strategic flexibility, allocating 50% of funds to dollar-generating companies, and notes the significance of the British International Investment&#8217;s $6 billion commitment to Africa.



To navigate diverse African markets, Onwusah emphasizes the importance of agility, market awareness, and tailoring strategies to local conditions, stating, &#8220;Maximizing impact requires a balanced approach to profitability and sustainability.&#8221;



Addressing challenges, Onwusah sees opportunities for impactful solutions, stating, &#8220;Infrastructure gaps and talent shortages can be addressed through strategic investments in development and education.&#8221;



She advocates for managing economic and political instability through diversified investments and proactive risk assessment.



Onwusah encourages a socially responsible investment approach, stating, &#8220;Contributing positively to Africa&#8217;s development is not just financial success but dispelling negative perceptions.&#8221;



She urges investors to view Africa as a dynamic landscape with potential for progress.



Citing McKinsey&#8217;s data, she highlights the potential of African startups to contribute $2.6 trillion to the continent&#8217;s GDP by 2030.



Onwusah emphasizes the cascading effect of increased funding in the tech ecosystem, fostering innovation, job creation, entrepreneurship, and sustainable economic development.



She says: &#8220;It&#8217;s about igniting a transformative journey, empowering local talent, and positioning Africa as a global innovation powerhouse, a journey Alterra&#8217;s fund has the power to catalyze.&#8221;

Abuja, Nigeria.

Dangote-Backed Private Equity Firm Secures $140 Million In Initial Funding For $500 Million Africa-Focused Fund

The $2.2 billion initial public offering of dating application Bumble on Thursday went off like so many before it. Bumble’s bankers upped its IPO price about 50% from an initial range to meet fierce demand for shares, but it didn’t tame the raging animal spirits of investors bidding up tech stock valuations into the stratosphere. Bumble shares skyrocketed 63% on its first day of trading, making founder and CEO Whitney Wolfe Herd, 31,&nbsp;<a href="https://www.forbes.com/sites/angelauyeung/2021/02/11/bumble-founder-whitney-wolfe-herds-fortune-rockets-past-1-billion-as-dating-app-goes-public/?sh=2996769a578d">the world’s youngest self-made woman billionaire</a>.



Add Wolfe Herd to a long line of new billionaires from&nbsp;<a href="https://www.forbes.com/sites/alexkonrad/2020/03/13/zoom-video-coronavirus-eric-yuan-schools/?sh=aaa853d4e714">Zoom’s Eric Yuan</a>, to&nbsp;<a href="https://www.forbes.com/video/6227540308001/meet-frank-slootman-the-ceo-behind-softwares-biggest-ipo/?sh=7e7a078d7010">Snowflake’s Frank Slootman</a>, Peloton Interactive’s&nbsp;<a href="https://www.forbes.com/companies/peloton-interactive" target="_blank" rel="noreferrer noopener">PTON</a>&nbsp;<a href="https://www.forbes.com/companies/peloton-interactive">+5.6%</a>&nbsp;John Foley and&nbsp;<a href="https://www.forbes.com/sites/alexkonrad/2020/12/09/billionaire-tom-siebel-does-it-again-shares-of-c3ai-soar-140-in-first-day-trading-at-ipo/?sh=1f9f27842247">C3.ai’s Tom Siebel</a>, who have all seen their fortunes soar due to piping hot IPO markets. However, instead of generating yet another big haul for a handful of Sand Hill Road venture capital firms, it was Blackstone Group, the world’s largest private equity firm, that also hit the jackpot on the IPO.



Just 15-months ago, Blackstone plowed over $2 billion of cash to take control of Bumble’s parent company, MagicLab, at a $3 billion valuation, making an unconventional investment for the $619 billion (assets) mega-firm in a mobile dating application. Blackstone’s initial investment has already returned about $2.3 billion in cash due to dividends and proceeds from Bumble’s offering and the PE firm still sits on shares worth about $4 billion.



For Blackstone’s flagship $18 billion buyout fund, BCP VII, the deal is a home run. All in, the firm has already made over four-times its initial investment, according to&nbsp;Forbes’&nbsp;calculations. The windfall is mostly housed in the fund, and others like its tactical opportunities and growth funds. But it’s hardly an aberration. Look across Blackstone’s private equity portfolio and the firm seems to be sitting on a gold mine of similar dealmaking coups in companies involving digital payments, cloud software and data.



Blackstone’s massive takeover of Refinitiv from Thompson Reuters recently merged with the London Stock Exchange. Paysafe, an online payments company that is planning to go public in a Spac deal, looks like it will yield a return of about three-times for Blackstone. Ultimate Kronos, a cloud company focused on human resources and managing employees, which Blackstone jointly owns with Hellman &amp; Friedman, is a potential mega-sized tech IPO for Wall Street to expect in coming years. Add it all up and Blackstone may about to start cashing in on a buyout fund that sets a new bar for making money at the firm.MORE FOR YOU<a href="https://www.forbes.com/sites/robinryan/2020/11/03/how-to-answer-new-hard-interview-questions-employers-now-ask/">How To Answer New, Hard Interview Questions Employers Now Ask</a><a href="https://www.forbes.com/sites/stevenbertoni/2021/01/14/why-billion-dollar-start-up-airtable-built-a-c-suite-of-outside-tech-veterans-during-covid-19/">Why Billion-Dollar Startup Airtable Built A C-Suite Of Outside Tech Veterans During Covid-19</a><a href="https://www.forbes.com/sites/emmareynolds/2021/01/14/the-wealthy-are-moving-to-these-5-us-mountains-towns/">The Wealthy Are Moving To These 5 U.S. Mountain Towns</a>



At year-end 2020, Blackstone’s BCP VII fund, which finished investing in February 2020 just as the pandemic hit, was marked at a 15% net IRR, or a 1.5-times multiple on invested capital, according to filings. Dividend recaps of Bumble and IntraFi, and the sale of Cloverleaf Cold Storage to Americold have returned over $2 billion in cash. As of the fourth quarter, the fund’s net accrued performance revenues were $688 million, filings show. Normally, it takes many years for private equity profits to be realized, but with financial markets sopping up every offering that comes down the pike, the fund is operating at a sprinter’s pace. With new bumble profits now in the bank, it already looks to be a big driver of overall profits for Blackstone in 2021.



Overall, Blackstone is benefitting from being on the right side of technology trends and possessing a portfolio loaded with companies well suited for current markets. In real estate, it says its performance is tracking 1,300 basis points above the REIT Index due to big bets on logistics and life science real estate, and an underweight position in retail and office assets. It’s flagship real estate fund BREP VIII $16.6 billion real estate fund has already returned nearly $14 billion to investors at a multiple of 2.3-times their money thanks to deals like BioMed Realty Trust, and it sits on a total portfolio valued at over $27 billion.



Coming out of the enormous disruption of the pandemic, Blackstone is beating the drum that the firm is firing on all cylinders. Now that it has listed Bumble, Blackstone’s growth equity business may be the next business to list a massive windfall as it aims to bring oat milk company Oatly public.



“For the past several years, we&#8217;ve been orienting the firm towards faster growing areas such as life sciences and those connected to the digital economy,” said Jonathan Gray, president and COO of Blackstone, in the company’s fourth quarter earnings call in late January. “These continue to be amongst the best-performing sectors of the market and were the largest drivers of appreciation in our funds, including our holdings in global logistics, digital payments and enterprise software.”



On Thursday, Blackstone shares closed above $70, near record highs, having returned over 10% year-to-date.



For more:



See Forbes’ <a href="https://www.forbes.com/sites/clareoconnor/2017/11/14/billion-dollar-bumble-how-whitney-wolfe-herd-built-americas-fastest-growing-dating-app/?sh=6ee306248b30">cover story</a> on Bumble founder Whitney Wolfe Herd, our 2019 <a href="https://www.forbes.com/sites/angelauyeung/2019/07/08/exclusive-investigation-sex-drugs-misogyny-and-sleaze-at-the-hq-of-bumbles-owner/?sh=7aaf7ba36308">investigation</a> into its culture, and <a href="https://www.forbes.com/sites/angelauyeung/2021/02/11/bumble-founder-whitney-wolfe-herds-fortune-rockets-past-1-billion-as-dating-app-goes-public/?sh=2fd03cce578d">how Wolfe pulled off</a> the company’s massive, Blackstone-backed IPO.



By Antoine Gara, Forbes Staff

Blackstone Seeks Payout From Bumble Loan Amid Online Dating Boom

The Bumble IPO And Blackstone’s Private Equity Gold Mine

What does Gateway Partners do?
We connect private capital to investment opportunities that we believe are exceptionally attractive across Africa, the Middle East and southeast Asia. We believe these markets are fundamentally attractive for a few reason. One is demographics, with two-thirds of the population under the age of 35, or in Africa’s case, three quarters. We’re also rapidly urbanizing. Across Africa, the Middle East and southeast Asia, almost a billion-and-a-half people will get urbanized over the next 20 to 30 years. If you add the young, growing population with the burgeoning urbanization, you have an increase in consumption and a growth in manufacturing services. Then, if you look at the global economy over the last 20 years, the biggest growth engine has been the trade and investment floors between and across emerging markets.
How important is private equity for Africa?
I think it’s important for a variety of reasons. Africa needs to invest a lot more. It’s estimated that you’ve got to spend another $50 billion a year in building Africa’s infrastructure. If you take the growing consumer, there is a huge opportunity there. Agriculture is also a huge opportunity. So, all of that requires investment. The big challenge that Africa has is its savings rate is very low. The savings rate to GDP ratio across Africa is 15%. In contrast, China has close to 45%. Also the size of the domestic financial sector, once you get outside of South Africa, is very small relative to the investment requirements of Africa.
I’ll give you an example, if you take the entire Nigerian banking system, the combined market capitalization of the top 10 banks, is less than a quarter of the market capitalization of the single largest bank in Indonesia… It means Africa needs foreign capital. Foreign capital takes the form of private equity, foreign markets, bond markets or bank lending. Africa probably needs all of them.
Also, private equity is useful in bringing in potentially an upgradation in management skills, technical skills and technology.
<a href="http://www.forbesafrica.com/homepage/2018/02/27/can-no-longer-say-not-problem/" target="_blank" rel="noopener noreferrer">READ MORE: &#8216;We Can No Longer Say It Is Not My Problem&#8217;</a>
In terms of investment, how does Africa compare to other parts of the world you have worked in , like Asia, the Middle East and Europe? 
In a word: attractive. But, it’s not without its challenges and risks. The way I like to look at Africa is this is China 1990. This is India 2000. This is Vietnam 2005. If you were to look at Africa as the great market for people wanting to buy their first microwave, their first refrigerator, their first car, their first apartment, there is a huge underlying market here.
Also, Africa has had the second highest GDP growth of any continent over the last 10 or 20 years. The levels of governance and the macroeconomic fundamentals of Africa are generally improving. In 20 years, Africa will have more people of a working age than either India or China. If you take agriculture, 60% of the world’s uncultivated arable land is in Africa. If you look across the spectrum, there is a huge need. But, it is not without risk because capital markets are not deep and liquid. The quality of governance in some of these companies is not really high. A lot of the entrepreneurs are third generation entrepreneurs. They need to be lifted up and almost mentored.
What do you look for in a company before making an investment?
As Gateway Fund, we look for companies that provide goods and services that cater to the basic needs of humanity in our markets. We don’t like to invest in companies to do caviar. We don’t like to invest in companies that are a bet on the future and no cash flows. We invest in very basic companies – what we like to call Maslow’s hierarchy of needs bottom of the pyramid – food, shelter, clothing, that kind of stuff. If you look at the stuff we’ve invested in: biscuits and buns, convenience stores, cement, optical fiber network, or data which today is basic.
We also look for companies that have good management that we can trust and work with. And we look where we can add value in terms of taking them into new geographies, new markets and new clients.
<a href="http://www.forbesafrica.com/homepage/2017/06/14/billions-investment-no-jobs/" target="_blank" rel="noopener noreferrer">READ MORE: Billions In Investment But No Jobs</a>
Aliko Dangote is on Gateway’s advisory board. How beneficial is it having the richest man in Africa part of your team? 
It’s huge. He provides insight into how Africa thinks, how Africa behaves, what works in Africa, what doesn’t work in Africa. You can do a 100-year MBA program at any business school and you won’t get that. Then, also, when we look at transactions and understanding whether that makes sense, providing the due diligence on the deal, that helps us as well. Also having somebody like Aliko to help our investee companies go into other markets helps. But I would just hasten to add, Aliko is the star of Africa, but we are also fortunate to have similar high quality advisory board members.

‘Africa Needs Foreign Capital’

The Kraft Heinz Co. is a $100 billion market capitalization company that generates more than $26 billion in annual revenue by selling iconic brands like Heinz Ketchup, Velveeta Cheese and Kraft Macaroni. Starting in October, Kraft Heinz’s finances will be overseen by a 29-year-old.
The company announced that David Knopf will be the new chief financial officer of Kraft Heinz. Knopf has been working since 2015 at Kraft Heinz, where his responsibilities included overseeing the Planters Nuts brand and heading global budget and business planning, as well as zero-based budgeting and financial strategic planning as a vice-president.
Knopf is also a partner at 3G Capital, the private equity firm backed by billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira, and Marcel Herrmann Telles. 3G partnered with Warren Buffett to buy Heinz in a $23 billion deal and then merged the company with Kraft.
Knopf, who also worked on the 3G-led $11 billion Burger King acquisition of Tim Hortons, played a prominent role in the $45 billion Kraft Heinz merger. After the deal closed, Knopf went to work at Kraft Heinz. According to his <a href="https://www.linkedin.com/in/david-knopf-62142b92" target="_blank" rel="noopener">LinkedIn page</a>, Knopf started working at 3G in 2013 as an analyst and was promoted to partner in 2015. Paulo Basilio, Kraft Heinz&#8217;s current CFO, will move on to become zone president of the U.S. business, which is struggling to grow revenues.
Knopf was on <a href="https://www.forbes.com/30-under-30-2017/finance/#7cfb3e3d1ecc" target="_blank" rel="noopener">Forbes’ 30 Under 30 Finance list in 2017</a>. His promotion to such a big position at the age of 29 is another sign that financial professionals are accumulating more and more responsibility at a younger age. 3G is known for handing big roles to younger professionals but the trend seems to be getting broader both on Wall Street and beyond.
<div class="vestpocket">A graduate of Princeton University, Knopf has also spent some time at Goldman Sachs as an investment banking analyst and at Onex, a private equity firm. &#8211; Written by <a href="https://www.forbes.com/sites/nathanvardi/" target="_blank" rel="noopener" data-ga-track="contrib block byline">Nathan Vardi</a>, FORBES STAFF</div>

Tag: private equity

FORBES AFRICA SOCIAL MEDIA

Dangote-Backed Private Equity Firm Secures $140 Million In Initial Funding For $500 Million Africa-Focused Fund

The Bumble IPO And Blackstone’s Private Equity Gold Mine

‘Africa Needs Foreign Capital’

The 29-Year-Old Who Was Named Chief Financial Officer Of Kraft Heinz