Afinitas to launch new investment fund

Staff Writer | Tuesday April 4, 2017 15:42

In its financial statements for the year ended December 31, 2016, the company said the fund would be launched through its newly formed Africa-focused asset management company, Adventis Limited.

Managing director, Rupert McCammon said since its formation last year, Adventis has shown rapid progress.

He said the company was established to pursue investment opportunities in Africa, with a strong focus on Africa’s growing financial services sector.

It was established at the same time with the Ethiopia Investments Limited (EIL), a permanent capital vehicle that is focused on developing a world class Ethiopia focused conglomerate attracting significant inward investment into that country.

The two new companies were each allocated a budget of $2.5 million (P25.8m) with management teams having been appointed for both companies.

McCammon said EIL will invest across multiple sectors and in businesses at different stages of the development curve.

He, however, noted that the process of establishing EIL has been delayed by the state of emergency announced in October by the Ethiopian government.

“Despite the political turbulence, the board believes that Ethiopia remains an attractive investment destination for long-term investment,” he said. In addition, McCammon said a rapid expansion of the company’s 50% owned events management business, Africa Events Limited (AEL), has been approved with investor trips to 12 African countries planned for the next 12 months.

“AFSIC [Africa Financial Services Investment Conference], the flagship event, continues to develop as the leading investment event for Africa’s financial services sector,” he said.

McCammon further indicated that in the last quarter of 2016 an expansion of the activities of AEL was approved to include investor roadshows, adding that these will be focused on connecting investors with investment opportunities in the infrastructure, energy, power, renewables, mining and oil and gas sectors.

He said an experienced management team has been appointed to run these events, noting that the AFSIC will take place in London during May this year and is anticipated to witness record attendance numbers for the fifth year in a row.

Despite the accounting loss reflected in the financial statements, the directors expressed confidence that the company is in a strong financial position.

Total cash on the balance sheet is $8 million (P83.11m), which includes $5 million (P53.11m) allocated to EIL and Adventis. The balance of $3 million (P31.17m) is available for investment in the current financial year.

“Expenditure at EIL and Adventis is closely monitored and at this stage is in line with expectation and operational progress is also on track. These two investments are adequately funded to meet their strategic objectives,” he said.

The directors stated that the next 12 months are likely to see continued strong progress towards Afinitas becoming a significant pan African investment holding company.

The directors also anticipate that some of the new businesses will become cash flow positive and profitable towards the end of the year, with a possibility of Afinitas seeding and establishing more operating companies during the year.

“In this regard the company is working on establishing an office in Nairobi, Kenya. Details of this new venture will be communicated to the market in due course,” McCammon said.