Private family capital fund targets African growth companies

The $300 million fund has more deals in the pipeline for this year, and is targeting 10 to 15 investments in Africa.

One Thousand & One Voices (1K1V), a private family capital fund for sub-Saharan Africa, expects to make several more deals this year, its chief executive revealed following its purchase a stake in Beefmaster Holdings.

Beefmaster, a South African beef business, was the fund’s second investment in the agribusiness processing and distribution sector, after a February investment in South African raisin producer RedSun Dried Fruit and Nuts.

“Multiple” deals will be announced later this year, 1K1V chief executive Hendrik Jordaan told Agri Investor. The fund plans to make a total number of 10 to 15 investments with average investment size varies between $10 million to $40 million.

The $300 million fund was launched in early 2014. “The fund is backed exclusively by globally-influential, industry-leading families, including families in agribusiness,” said Jordaan.

Unlike a typical private equity fund, Jordaan said, “in every investment we make, we leverage the intellectual capital, i.e. the business know-how, and the relational capital, i.e. the relationships of the investors.” This allows the fund to create more value. Jordaan added that its ideal targets are small-size companies with $2 million to $15 million EBITDA.

Based in Denver, Colorado, 1K1V exclusively targets Africa. “Africa is the single most desirable emerging frontier in the world today,” Jordaan said. “Capital is pouring into Africa.” But, he added, much of that capital is going into large, billon-dollar funds and working on very large transactions. “What Africa really needs is investments in smaller growth companies, and they are the companies we invest in.”

1K1v was named Impact Investing Innovator of the Year at the Family Office Review Awards North America last June.