The Central Africa Growth Sicar fund has exited its stake in Oragroup, a Togo-based, regional commercial banking holding company. The exit represents 2.2x CAGS’ initial investment. CAGS is managed by pan-African private equity firm Emerging Capital Partners.
The Central Africa Growth Sicar (CAGS) fund, managed by pan-African private equity firm Emerging Capital Partners (ECP), today announces it has successfully exited its stake in Oragroup, the Togo-based, regional commercial banking holding company with operations spanning twelve countries in West and Central Africa. The exit represents 2.2x CAGS’ initial investment.
CAGS achieved the divestment through sale of its stake to Gabon’s Strategic Investment Fund (GSIF). The exit follows a 5 year holding period during which time CAGS provided development capital and strategic management expertise to support Oragroup’s growth ambitions. During CAGS’ holding period, Oragroup doubled its countries of presence, from six to twelve, and entered the Ivorian and Senegalese markets through the acquisition of Banque régionale de solidarité (BRS). In 2014, Oragroup also completed a significant second fundraising period, totaling US$40.6 million.
Emerging Capital Partners maintains its partnership with Oragroup through its most recent fund, ECP Fund III, which retains a majority stake in the company.
Commenting on the sale, Ferdinand Ngon, Managing Director at ECP’s Douala office, said: “Our investment in Oragroup is a great example of how we partner with high potential, regional companies with proven business models to help them achieve their next growth phase; and we were encouraged by the sale to GSIF as a testament to the growing interest of African sovereign wealth funds in investing across the continent. We are delighted to have played a part in the on-going development of this successful company and look forward to continuing our relationship through ECP Fund III.”
Commenting further, Patrick Mestrallet, CEO at Oragroup said: “CAGS’ investment benefitted Oragroup in its growth ambitions and its initiatives to improve operations and create further value for our customers and stakeholders. We have enjoyed the partnership with CAGS and congratulate them for their contribution.”
Oragroup is a regional banking group spanning 12 countries (Benin, Burkina-Faso, Ivory Coast, Gabon, Guinea Conakry, Guinea Bissau, Mali, Mauritania, Niger, Senegal, Chad and Togo) and 4 monetary zones. It has 104 bank branches and employs more than 1,500 staff to serve its tens of thousands of clients. Since its acquisition by ECP, Oragroup has focused on improving operational performance through the definition and the implementation within all the Group of procedures aiming at reducing the cost to income ratio and the cost of risk, in order to create a robust platform able to efficiently support the organic and external growth of the Group and to make the most of Group synergies.
About Emerging Capital Partners
Private equity firm Emerging Capital Partners (ECP) has raised more than US$2 billion for growth capital investing
in Africa. Founded in 2000, ECP was one of the first firms dedicated to Africa which, today, translates into
investments in more than 55 African companies and over 30 exits through seven funds.
ECP has returned over US$1 billion to its investors to date. Today, ECP has more people on the ground than any
other firm: more than 70% of its investment professionals, who hail from 12 African countries, operate from 7
ECP’s investments are well diversified, with private equity capital invested in over 45 African countries. Sectors
include financial services, telecommunications, retail and consumer, natural resources, agriculture and
infrastructure. ECP is committed to environmental, social and governance (ESG) principles and pledged to
operate under the United Nations Principles for Responsible Investment (UNPRI).
To date in 2014, ECP has been recognized as ‘PE Investor of the Year’ by the Africa CEO Forum. In 2013, ECP was
awarded ‘PE Fund of the Year’ by Africa AM magazine and was honored by Private Equity Africa with an award
for ‘PE Deal of the Year’, for its investment in casual dining chain, Nairobi Java House.
For more information, please see: www.ecpinvestments.com
For more information on Emerging Capital Partners, please contact:
Sara Firouzyar/Sarah Caddy
+44 (0)20 7935 4800