CDC Group plc et DEG lancent un appel à proposition pour la gestion d’un fonds Mezzanine

(Agence Ecofin) - Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), filiale de la KfW, CDC Group plc et d'autres investisseurs lancent un appel à proposition pour la structuration et la gestion d'un fonds de private equity orienté vers l’investissement en prêts mezzanine dans des projets durables Afrique subsaharienne. La date limite de soumission est fixée au 9 mars 2012.

Sub Saharan Africa Mezzanine Fund – Request for Proposal

Invitation for Submission of Expression of Interest (“Invitation”)

Purpose of the invitation

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH ('DEG'), a subsidiary of KfW, CDC Group plc ('CDC') (together, the 'Core Investors') and other investors are seeking preliminary proposals from fund managers for the formation and management of a commercial mezzanine fund that will invest 100% of its committed capital in sustainable mezzanine projects in Sub Saharan Africa ('the Fund').

Background

The Core Investors’ purpose is to promote the development of private business in developing and transition countries through the provision of long-term financing, thereby contributing to sustainable growth and a lasting improvement in the living conditions of the local population. As many Sub Saharan African markets face an overall lack of long-term capital supply, mezzanine financing can play an important role in addressing part of this gap by offering funding that complements existing debt and equity products. The Core Investors believe that mezzanine financing is well suited to strengthen and deepen local capital markets and are seeking to identify potential managers to support, in the establishment of a well-managed mezzanine fund.

Key fund details

The Core Investors expect the Fund to be established as a regional fund focused on investments in Sub Saharan Africa with the sole purpose of providing mezzanine financing. Together with other investors, the Core Investors expect to invest about USD 100 million for a first closing of the Fund.

Proposal process and delivery

Prospective fund managers are invited to provide a preliminary fund proposal to be evaluated against a set of pre-qualification criteria. Through this process the Core Investors will identify a shortlist of parties who will be invited to provide a detailed private placement memorandum (PPM) for further consideration.

The preliminary proposal should include the following information:

1. Team

a. For existing fund managers:

i. The full name, contact details, status of the fund manager and curriculum vitae (“CVs”) for the key team members;

ii. Prior experience in making mezzanine investments and prior experience of making investments in emerging markets, in particular in Africa;

iii. Fund-track-record; and

iv. Fund-raising track record

b. If the proposal requires a new fund manager to be formed:

i. The CVs and the availability of proposed key team members;

ii. The prior experience of proposed team members in making mezzanine investments and prior experience of making investments in emerging markets, in particular Africa;

iii. The track-record for any funds that proposed team members were previously involved in; and

iv. Any prior experience and success in fund raising of proposed team members.

2. Market

a. The prospective fund manager’s view on the market opportunities within the mezzanine

asset class in Sub Saharan Africa and an analysis of the specific market opportunities for their

preferred type of mezzanine financing.

b. Any particular advantages the prospective fund manager considers itself to hold in accessing opportunities within these markets.

c. Specifically, the prospective fund manager’s view on the desired target countries and sectors in the context of the overall market opportunity and the expected fund setup.

d. In the context of the market opportunity, the prospective fund manager’s view on the fund size necessary to implement its investment strategy, as well as planned local presence and the associated operating costs.

e. The prospective fund manager’s capacity to source and execute mezzanine deals and briefly outline potential pipeline if any.

3. Strategy

a. The prospective fund manager’s strategy for investing in the mezzanine asset class, including a detailed description of the expected mezzanine characteristics and a risk/return analysis of its preferred mezzanine financing.

4. Fund terms

a. Proposed key fund terms and conditions including fund size, GP investment, investment horizon / timeline, management fees, incentive arrangements, and expected fund domicile.

5. Other

a. Any other points the prospective fund manager wishes to bring to the attention of the Core Investors.

Deadline and submission details

Proposals must be submitted electronically by 17:00 CET on the 9th of March, 2012, to:

The Core Investors reserve the right, in their sole discretion, to not consider any proposal submitted after the deadline, and to extend the deadline.

Selection process and terms and conditions

A selection committee of DEG, CDC and other investors ('the Committee') will evaluate all proposals and select a short-list of finalists for further consideration. During the shortlisting process, the Committee may contact managers who submit proposals ('Managers') in order to request further clarification of information provided in their proposals. Managers will be notified on the outcome of the evaluation as it is relevant to them within approximately 2 weeks of the above submission deadline. The successful parties will then be informed of the PPM submission process thereafter.

By submitting a proposal, Managers will be agreeing to the Committee undertaking background checks as it deems reasonable. This will include referencing with prospective, existing and past investors, the managers of companies in which the Manager has invested, and other third parties. The Committee may also carry out checks with the managers of companies identified by the Manager as being suitable for investment by the Fund.

The Core Investors reserve the right not to select any of the proposals and this Invitation in no way obliges the Core Investors to provide financial support or otherwise to any proposal or fund manager or potential fund manager selected for the shortlist.

The Core Investors maintain strict confidentiality with respect to all business confidential information. The Core Investors will not, however, treat as confidential or proprietary general ideas and concepts contained within any proposal.

Terms and conditions

Any questions regarding this Invitation should be directed to Christoph Evard (Christoph.evard@deginvest.de) or to Lebogang Sibanyoni (Lebogang.sibanyoni@burlingtonconsultants.co.za)