Sango Capital, a South Africa-based investment management firm that makes direct and fund investments across the continent and has deployed over $1 billion across companies so far, has taken over the management of three African fund portfolios with about $460 million in committed capital.
The management change was initiated by a consortium of limited partners (LPs) of the existing funds. The Johannesburg, South Africa-based investor will assume management responsibilities of the funds, according to their mandates.
Sango Capital said the interests of the funds span multiple vintages in more than 20 markets across the continent. The funds have exposure to sectors such as financial services, consumer, FMCG, healthcare, infrastructure, energy, agribusiness, mining and industrial materials, and technology.
“We are honored to have been entrusted by this group of institutional limited partners with the stewardship of significant capital in established African private market vehicles,” said Richard Okello, co-founder and partner, Sango Capital. “Our objective is clear: support and accelerate continued value creation in the underlying portfolio, deliver returns on terms consistent with each fund's mandate, and continue to attract new capital to these markets.”
Sango didn't disclose the identities of the LPs.
The appointment comes less than two months after Sango Capital acquired more than $120 million in net asset value (NAV) from an institutional investor rebalancing its global portfolio. It underwrote 30 investments across four African funds. The acquired portfolio spans financial services, consumer and FMCG, infrastructure, and light manufacturing sectors.
Earlier, in April, it closed a continuation vehicle and acquired the remaining assets from its inaugural fund, financing the transaction using its own capital while also raising additional capital from a group of commercial investors, including first-time Africa allocators.
Founded in 2011 by former Bridgewater Associates partner Okello and Charles Mwebeiha, Sango Capital initially focussed on primary private equity. It has since expanded into secondary private equity, primary and secondary venture capital, and private credit.
“Secondaries, continuation vehicles, and institutional portfolio management mandates are emerging as the structural infrastructure that will sustain African private equity through its next chapter,” said Mwebeiha. “This appointment, together with our recent transactions, is representative of how we have built Sango as a platform to deliver returns, govemance, and execution at scale for institutional LPs.”
The firm’s portfolio includes direct investments in over 50 companies, private equity funds, and co-investments. It has completed more than 79 exits.
Its notable direct investments include the acquisition of Sotipapier, Tunisia’s leading paper packaging manufacturer, from SPE Capital in 2022. The firm has also invested in Nigeria-based grocery retailer Sundry Markets alongside Tana Africa Capital.
Last year, Sango Capital completed a secondary transaction in Anglophone West Africa-focussed Synergy Capital Managers’ $166-million Fund II, acquiring the majority of the limited partners’ interest. Previously, it had acquired a majority LP stake in Synergy’s $103-million Fund I through another secondary transaction.
The firm also manages the Sango Strategic Equity Vehicle (SSEV), an evergreen fund that invests in larger, upper-middle-market businesses with substantial growth potential. The SSEV fund has a longer holding period compared to Sango’s flagship PE funds.