Fidelity Equity Funds I and II, Ghana
SIFEM investees
Fidelity Equity Funds I and II (“FEF I and FEF II”)
SIFEM investments
FEF I - USD 4.0 million; FEF II - USD 3.0 million (all investments into fund equity)
SIFEM’s relationship with Fidelity Equity Funds (“FEF”) I and II dates back to 2000, when SIFEM invested in FEF I and bought a small stake in the manager Fidelity Capital Partners Ltd. (“FCPL”). In 2007 SIFEM invested in FEF II. The manager, FCPL, commenced business in November 1999 as a corporate finance and advisory services firm that also provided private equity and venture capital fund management. As the combination of advisory and investing activities undertaken by FCPL did not prove successful, SIFEM, together with another investor, FMO, was instrumental in fund restructuring and reorganization.
In 2004 SIFEM facilitated the reorganization of FCPL through diversification of its shareholder base and the admittance of the management team into share capital. Following reorganization, the company refocused on venture capital and private equity investment as its core business. To enhance FCPL’s viability in private equity SIFEM leveraged its regional networks and linked FCPL to a seasoned North African fund manager Tuninvest. Optimal corporate governance, fund, and management structures were sought. Moreover, SIFEM was also active in supporting the Ghanaian government’s initiative to develop the regulatory framework promoting private equity and venture capital in the country.
At the time of its establishment, FCPL managed just one private equity fund, FEF I, a USD 4.5 million fund with the majority shareholders SIFEM and FMO, which was increased to USD 8.5 million in size following the 2004 reorganization. The objective was to test and allow FCPL’s team to establish a track record in order to raise further funds. In this context the financial objective was modest, as such a small fund was uneconomical by nature. FEF I is fully invested in 10 enterprises across a range of sectors, from software development, manufacturing, and education to marine services, salt mining and mineral water distribution.
As FCPL developed its private equity expertise and track record, it was able to attract valuable partnerships with other private equity groups, and subsequently raise a larger follow-on fund in 2007. FEF II, a USD 25 million fund, was launched with Finnfund, FMO, Oikocredit, SOVEC, Venture Capital Trust Fund, SNNIT (a local pension fund) and SIFEM as investors. In 2005, via partnership with Tuninvest, Fidelity was appointed as the local investment partner of AfricInvest Fund I, a EUR 34 million pan-African generalist private equity fund managed by AfricInvest. Fidelity continued solidifying its partnership with AfircInvest, and was appointed as the local investment partner of AfricInvest Fund II, a EUR 140 million pan African follow-on fund to AfricInvest Fund I.
Through investments in FEF I and II, SIFEM and its co-investors have contributed to an estimated 777 jobs at investee companies that collectively generated revenues of roughly USD 15 million in 2009.
Fidelity Equity Funds I and II (“FEF I and FEF II”)
SIFEM investments
FEF I - USD 4.0 million; FEF II - USD 3.0 million (all investments into fund equity)
SIFEM’s relationship with Fidelity Equity Funds (“FEF”) I and II dates back to 2000, when SIFEM invested in FEF I and bought a small stake in the manager Fidelity Capital Partners Ltd. (“FCPL”). In 2007 SIFEM invested in FEF II. The manager, FCPL, commenced business in November 1999 as a corporate finance and advisory services firm that also provided private equity and venture capital fund management. As the combination of advisory and investing activities undertaken by FCPL did not prove successful, SIFEM, together with another investor, FMO, was instrumental in fund restructuring and reorganization.
In 2004 SIFEM facilitated the reorganization of FCPL through diversification of its shareholder base and the admittance of the management team into share capital. Following reorganization, the company refocused on venture capital and private equity investment as its core business. To enhance FCPL’s viability in private equity SIFEM leveraged its regional networks and linked FCPL to a seasoned North African fund manager Tuninvest. Optimal corporate governance, fund, and management structures were sought. Moreover, SIFEM was also active in supporting the Ghanaian government’s initiative to develop the regulatory framework promoting private equity and venture capital in the country.
At the time of its establishment, FCPL managed just one private equity fund, FEF I, a USD 4.5 million fund with the majority shareholders SIFEM and FMO, which was increased to USD 8.5 million in size following the 2004 reorganization. The objective was to test and allow FCPL’s team to establish a track record in order to raise further funds. In this context the financial objective was modest, as such a small fund was uneconomical by nature. FEF I is fully invested in 10 enterprises across a range of sectors, from software development, manufacturing, and education to marine services, salt mining and mineral water distribution.
As FCPL developed its private equity expertise and track record, it was able to attract valuable partnerships with other private equity groups, and subsequently raise a larger follow-on fund in 2007. FEF II, a USD 25 million fund, was launched with Finnfund, FMO, Oikocredit, SOVEC, Venture Capital Trust Fund, SNNIT (a local pension fund) and SIFEM as investors. In 2005, via partnership with Tuninvest, Fidelity was appointed as the local investment partner of AfricInvest Fund I, a EUR 34 million pan-African generalist private equity fund managed by AfricInvest. Fidelity continued solidifying its partnership with AfircInvest, and was appointed as the local investment partner of AfricInvest Fund II, a EUR 140 million pan African follow-on fund to AfricInvest Fund I.
Through investments in FEF I and II, SIFEM and its co-investors have contributed to an estimated 777 jobs at investee companies that collectively generated revenues of roughly USD 15 million in 2009.