ECP’s Central Africa Growth Sicar exits Oragroup
The Central Africa Growth Sicar (CAGS) fund, managed by pan-African private equity firm Emerging Capital Partners (ECP), has exited its stake in Togo-based commercial banking holding company Oragroup.
The exit form Oragroup, which currently has operations spanning 12 countries in West and Central Africa, represents 2.2x return on CAGS’ initial investment.
CAGS achieved the divestment through sale of its stake to Gabon's Strategic Investment Fund (GSIF). The exit follows a five 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 12, 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, totalling USD40.6 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.
Ferdinand Ngon, managing director at ECP’s Douala office, says: “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.”
Patrick Mestrallet, CEO at Oragroup, says: “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.”
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