Harith has concluded the acquisition of the entire shareholding of the Company from the shareholders of FMFML (namely Standard Bank Group Limited (“SBG”), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”) and EMP (Africa), L.L.C. (“EMP Africa”) for an undisclosed sum.
The Funds provide an array of innovative debt products to select emerging markets with an Africa focus and have a strong track record of financing infrastructure projects across a range of sectors. FMFML has successfully managed the Funds since its establishment in January 2002, with the current combined fund capacity of the Funds exceeding US1.2bn and a focus on increasing its capacity.
EAIF provides long term debt or mezzanine finance to support the construction and development of private infrastructure to over 50 projects across sub-Saharan Africa. GuarantCo provides guarantees for local currency financing for infrastructure projects and operates in and around the developing world. Major investors of the Funds include major European governments and commercial and developmental finance banks.
Harith is an established and dedicated fund manager with a predominantly African focus and a wealth of experience in infrastructural investment. FMFML will seek to leverage off Harith’s strategic relationships, expertise and complementary product offerings to support the objectives and vision of the Company and the Funds. Harith’s acquisition of FMFML may better position FMFML to develop to its full potential in a focused fund management operation with an African focus and will provide a further platform for Harith’s growth ambitions.
The management team of FMFML will remain in place and the Company will continue to operate as a stand-alone business under the Frontier Markets Fund Managers name, supported by Harith and its infrastructure.
The acquisition forms part of Harith’s growth strategy of being a multi-fund manager and will greatly enhance its geographic footprint in the market, says Harith CEO Tshepo Mahloele. The synergistic nature of this deal, offering debt and equity products, will provide Harith’s clients with a “one-stop service” in their quest to secure much needed finance for good infrastructure projects in the continent.
Mahloele says the transaction also represents a strategic fit and leap in terms of broadening the human capital and the diverse set of skills and experience in the platform. “We envisage that the platform will continue to enjoy the support of the existing donor community as represented by a number of European governments and will become a vehicle of choice for international capital and African capital looking for exposure in the continent.”