Business Editor
LOCAL private equity firm Brainworks Capital has been appointed as one of the key financial advisors to the US$325 million Atlas Mara investment vehicle.
Atlas Mara is a banking investment cash shell sponsored by Mr Bob Diamond, former Barclays Plc CE, together with Ugandan Mr Ashish Thakkar, which seeks to reinforce a rising sense of business opportunities in Africa.

Market watchers say although Atlas is a broad-based fund focused on Africa, having a Zimbabwean among the financial advisors would ensure that some of the funds will be channelled to the local market, which has over the years been starved of investments. Others say the move will provide a boost to financial sector investments linked to Brainworks such as Ecobank and ABC Holdings.

Brainworks, which arguably has been more active on the corporate finance side than most of its peers, is headed by Mr George Manyere.
Mr Manyere previously worked at the International Finance Corporation.

In fact, most of the team members assembled by Mr Diamond have had some work experience at IFC.
Mr Arnold Ekpe, a former boss of Africa’s Ecobank, was appointed chairman of the company, on an annual fee of US$125 000. The company also named a number of non-executive directors, including Ms Rachel Robbins, a former vice-president of the IFC, who will get US$85 000 a year.

In its prospectus, Atlas Mara has established a founder network from which to identify and generate acquisition opportunities. The company has engaged Jyrki Koskelo who has more than 30 years experience in emerging markets and in various roles at the IFC.

The company said: “In addition, the founders have relationships with the following local advisors across the African continent who they may call upon to assist the company in respect of the sourcing of an acquisition in the region.

These are (including Mr Manyere) Serengeti Capital’s Mr Francis Kalitsi, who was formerly the head of Real Estate Private Equity Business at Renaissance Capital in Africa, and prior to that worked at the IFC; Africa Consulting and Trading’s Mr Ibrahima Cheikh Diong, who also previously worked at the IFC and Bridge Capital Holdings; Mr Reuben Warirah, a Kenyan national who previously worked at the IFC.

The group will “focus on acquiring a company or business in the financial services sector with all or a substantial portion of its operations in Africa”, it said in the prospectus. The cash shell is likely to focus on a lender that banks the business sector, where the lack of capital availability is greater, rather than consumers.

Atlas raised US$325 million in an initial public offering in London.
Citigroup Inc was sole co-ordinator and bookrunner for the London IPO.

The group will seek to generate returns through operational improvements at the target company and from possible complementary acquisitions, according to the statement. The acquired company will probably have operations in markets with strong underlying fundamentals, “clear broad-based growth drivers” and an established regulatory system, the group said.

Economic growth in sub-Saharan Africa is forecast to accelerate to 6,1 percent in 2014 from an expected 5,6 percent this year, according to data from the International Monetary Fund. Investment is expected to rise to 23,2 percent of GDP from 22,8 percent in this year, according to the data.

“There are significant gaps in the market today including the need for capital created by European financial institutions retreating to their home territories due to the sovereign debt crisis and the Basel III regulatory framework at a critical time for growth in Africa,” the company said in the statement.

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