Last week, Zoscales Partners announced that it has made the first two deals for its maiden fund. The fund, whose primary focus is deals in Ethiopia with satellite investments in the greater East African region, has $75 million in capital which it is looking to invest in small and medium-sized businesses in the FMCG and Healthcare sectors, as well as materials and renewable energy businesses. According to Zoscales’ website, these sectors are attractive due to promising CAGRs which are anticipated to exceed 15%, as well as their sell-on attraction to trade buyers and secondary private equity acquirers. By the end of the first quarter of next year, the investment firm expects to have deployed 45% of its committed capital.
The first of the two transactions announced last week is for CGF Crown Cork Manufacturing, a leading manufacturer of metal crown cork that it supplies to multinationals in the beverage industry. The capital from the investment will be used to help CGF become a diversified packaging solutions provider to the beverage sector in East Africa, further bolstering its market position and helping it take full advantage of the expansions planned by beer and consumer soft drink multinationals in Ethiopia, locking in significant growth.
The second of the two deals is in Ethio-Asia, a manufacturer of personal care products in Ethiopia, which produces well-known, branded soap and detergent products. The capital will be used to expand the firm’s production capacity and foster the firm’s innovation capabilities. In addition, Zoscales will work with the company’s management team to improve Ethio-Asia’s environmental, social and governance standards, making its operations more sustainable.
Zoscales Partners is based in Addis Ababa, where its investment team is led by Co-Managing Partners Ashenafi Alemu and Jacop B. Renschler.
Source: Africa Capital Digest, 29 October 2018: http://africacapitaldigest.com/zoscales-makes-first-two-deals-for-maiden-fund/