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Southbridge Investments
Company typePrivate Company
Founded2021
FounderDonald Kaberuka & Lionel Zinsou
HeadquartersRwanda,
Kigali
ServicesAsset Management
AUMLess than $25M
Number of employees
25+
Websitehttps://www.southbgroup.com

Overview

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SouthBridge Investments (SBI) was incorporated in 2020 as the investment and asset management arm of SouthBridge Group[1], a Pan-African advisory and investment company established in 2017. It was founded by Dr. Donald Kaberuka & Mr. Lionel Zinsou and led by preeminent and seasoned African professionals in the investment industry.[2][3]

SBI is an impact-oriented firm that aims to provide extensive Pan-African investment services and directly manages a range of investment vehicles fully dedicated to African markets while advising partners and clients on investment issues and opportunities. Creating impact and value for stakeholders and making sustainable investments are at the core of its operations.

SBI activities include managing investment funds[4]as a general partner or a co-general partner in joint ventures with other specialized firms, providing advisory services to other funds in the investment space, and crowding in investments from inside and outside Africa into specialized vehicles or strategic deals.  SBI’s overarching goal is to be actively involved in the realization of African potential by channeling investments to unique opportunities and differentiating itself through specific features, including an unparalleled team with some of the most experienced professionals within the African investment industry, and an exceptional network in Africa and across the globe, premium access to deal flow in all regions of the continent, and a strong emphasis on creating value over the long-term.[5]

Investment overview

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SBI manages and advises investment vehicles crowding in debt, equity, or grant capital from institutional investors, HNWIs, DFIs, corporates, foundations, and sovereigns. SouthBridge Investments targets 4 key pillars of intervention:

People

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SBI is focused on previously untapped areas of investing, such as SMEs and women.[6] SMEs and women are the backbone of many economic and business activities in Africa. SBI believes that investing in commercially sustainable businesses truly contributes to the growth of local economic development.

Finance

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SBI is convinced financial inclusion is at the core of African challenges, with 59% of unbanked, a $50 billion financing gap for women SMEs and African countries demographics driving the need of an increasing number of opportunities for young people.

Technology

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SBI is using digital platforms to create digital footprint for SMEs. Cluster economies identified in Africa offer a unique business sphere for stimulating technological innovation, nurturing new start-ups, attracting investment, and generating socio-economic growth.

Climate resilience and adaptation

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SBI’s ambition is to catalyze climate finance in African markets. Leapfrogging carbon-dependent infrastructure by building green and resilient infrastructure will allow to reconcile economic development with climate change mitigation and adaptation in African markets.

Southbridge value proposition

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Key observed risk Mitigation Approach Expected Outcome
First time GP
  • Partnership model
  • JVs with experienced investors in other geographies (Eurazeo, Amundi, Pegasus)
  • Leverage AFRICA knowledge with international experience and track record
Balancing impact and financial returns
  • Digital solutions to assessing opportunities Unique origination partnerships Efficient portfolio supervision techniques Local presence and knowledge
  • Digital approval & impact tracking Psychometric testing AI & machine learning Lower post-investment fees
Currency risks
  • Investing in multiple geographies Regional focus in currency zones pegged to EUR Dynamic Treasury actions for working capital
  • Natural hedges Limited currency exposure Dynamic exposure management
Pipeline development
  • Deal preparation to pre-IC level Create synergies across specialized vehicles with complementary product offer (debt, equity, etc.)
  • Investment ready pipeline
Instrument risk
  • Incremental approach — multiple bites at the apple Cross vehicle learning Pilot and scale with fail-fast build-ins
  • Organic growth strategy Lower failure rate at exit
Exit'
  • Leverage our Financial Advisory dedicated team (already solicited by others PEs and VCs to support on exit) Focus on African ownership through our African investors network
  • Exit considerations at structuring stage
  • Smoother exit with higher impact and multiples

Services

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FINANCIAL AND SOVEREIGN  ADVISORY ASSET MANAGEMENT SERVICES SECTOR-AGNOSTIC

SOUTHBRIDGE INVESTMENT PORTFOLIO

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MICROLENDING PLATFORM FINANCIAL SECTOR WOMEN SMEs GROWTH EQUIPMENT LEASING SUB-NATIONAL CLIMATE FUND FORESTRY FUND
  • A $30 M Pan-African micro-credit fund and dedicated to women entrepreneurs
  • $100 to $10,000 micro-loans executed through our Fintech partners and couple with an innovative credit-scoring model
  • Coupled with grant-founded acceleration activities managed by local partners
  • €200 M permanent capital vehicle managed by SBNA, a JV between SouthBridge Investments and NACP[7]
  • an integrated financial services ecosystem (banks, insurance, Fintech,...) to support financial inclusion through digitization
  • On-going acquisition processes for West African banks
  • A top-tier finance professional team with years of operational experience
  • A $70 M Pan-African SME growth equity fund focusing on women-owned, women-led, women-employing, or women-sourcing SMEs in Africa
  • An active climate-impact screening & monitoring strategy
  • $1M to $8M equity tickets for minority positions with significant control
  • A €150m investment vehicle focused on financing industrial equipment through leasing and collateralised debt solutions
  • Ticket size: €1m to €15m (15 to 25 transactions)
  • A partnership between SouthBridge Investments and a leading finance specialist for high-growth European SMEs
  • SouthBridge Investments is advising a $1Bn fund focused on investing in mid-size climate resilient and low-carbon infrastructure and nature-based solutions, in developing countries.
  • Managed by an experienced fund manager, Pegasus Capital Advisors
  • Investing tickets between $ 5 M and $75 M
  • Backed by a grant-funded technical assistance facility
  • SouthBridge Investments is a potential advisor to Bezos Earth Fund to set-up a future forestry fund that will aim to engage private sector contribution in restoration projects.[8]
  • The fund will be sponsored by the World Resource Institute in alignment with AFR100 Initiative, a country-led effort to bring 100 million hectares of deforested and degraded landscapes across Africa into restoration by 2030 and already mobilized $2 Bn from 34 countries
  • Bezos Earth Fund will contribute as a first-loss grant funder.

LEADERSHIP

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Frannie Laeutier is the Senior Partner and CEO of SouthBridge Investments and has held senior positions at the World Bank and the African Development Bank. [9][10] Frannie is a highly experienced and well-known finance and development expert with long-standing global experience leading and transforming organizations in the private, public, and not-for-profit spheres. She has held various leadership roles at The Trade and Development Bank (TDB) Group, including Vice Chair of the Board, Special Advisor to the President before becoming TDB’s first Chief Operating Officer.  She also led the Asset Management business of TDB, including the recent launch of a unique product for trade finance in Africa.

She graduated from the Massachusetts Institute for Technology (MIT) with a Master of Science in Transportation and a Ph.D. in Infrastructure Systems. She went on to work at the World Bank Group (WBG), where during her 15-year career, she held senior financial positions across the Group. Frannie served as Vice-President for nearly seven years of her tenure at the WBG. She was also Senior Vice President at the African Development Bank (AfDB).[11][12]

BOARD OF DIRECTORS: IN CHARGE OF SBI OVERALL STRATEGY & FINANCIAL SUPERVISION

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FURTHER READINGS

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  • SBI and New African Capital Partners  (NACP) announced the launch of their joint venture: SBNA.[17]
  • SouthBridge Investments and the Arab Bank for Economic Development in Africa (BADEA) announced a $2 billion blended finance mechanism to support locally led African restoration.[18]
  • SouthBridge and BADEA: “A clean breathing chance to the earth.[19]
  • Investing for Change in Africa.[20]
  • Lionel Zinsou et Donald Kaberuka : tout ce qu’il faut savoir sur SouthBridge, leur banque d’affaires panafricaine.[21]

REFERENCES

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  1. ^ "SouthBridge Investments | AFR100". afr100.org. Retrieved 2023-08-16.
  2. ^ "The pan-African ambitions of SouthBridge investment bank". The Africa Report.com. Retrieved 2023-08-16.
  3. ^ "ImpactAssets 50: SouthBridge Investments". impactassets.org. Retrieved 2023-08-16.
  4. ^ SOUTHBRIDGE. "SouthBridge and two partners announced a $2 billion fund to finance restoration and reforestation projects in Africa". Ecofin Agency. Retrieved 2023-08-16.
  5. ^ "SouthBridge Investments Portfolio Investments, SouthBridge Investments Funds, SouthBridge Investments Exits". www.cbinsights.com. Retrieved 2023-08-16.
  6. ^ "ImpactAssets 50: SouthBridge Investments". impactassets.org. Retrieved 2023-08-16.
  7. ^ "SouthBridge Investments Announces Joint Venture - THISDAYLIVE". www.thisdaylive.com. Retrieved 2023-08-16.
  8. ^ SOUTHBRIDGE. "SouthBridge and two partners announced a $2 billion fund to finance restoration and reforestation projects in Africa". Ecofin Agency. Retrieved 2023-08-16.
  9. ^ "Dr. Frannie Léautier". Global Energy Alliance for People and Planet (GEAPP). Retrieved 2023-08-16.
  10. ^ "Dr. Frannie Léautier — Speaker | Investopia Inaugural Summit". investopia.ae. Retrieved 2023-08-16.
  11. ^ "The Subnational Climate Finance Initiative announces the establishment of a High-Level Advisory Committee". SCF. 2022-09-19. Retrieved 2023-08-16.
  12. ^ "Dr. Frannie Leautier". FSD Africa. Retrieved 2023-08-16.
  13. ^ "Donald Kaberuka". live.worldbank.org. 2022-04-22. Retrieved 2023-08-16.
  14. ^ "Donald Kaberuka". International Growth Centre. Retrieved 2023-08-16.
  15. ^ "LIONEL ZINSOU｜Ashinaga". Ashinaga. Retrieved 2023-08-16.
  16. ^ "Andrew Alli – Endeavor Nigeria". Retrieved 2023-08-16.
  17. ^ "SouthBridge Investments Announces Joint Venture - THISDAYLIVE". www.thisdaylive.com. Retrieved 2023-08-16.
  18. ^ World Resources Institute (2022-11-07). "RELEASE: Anchor Investments Announced to Launch $2 Billion Fund for Locally-Led Restoration in Africa". World Resources Institute.
  19. ^ SOUTHBRIDGE. "SouthBridge and BADEA : "A clean breathing chance to the earth"". Ecofin Agency. Retrieved 2023-08-16.
  20. ^ "Building Bridges : Aligning Finance with Sustainability - Investing for Change in Africa". www.buildingbridges.org. 2022-05-23. Retrieved 2023-08-16.
  21. ^ "Lionel Zinsou et Donald Kaberuka : tout ce qu'il faut savoir sur SouthBridge, leur banque d'affaires panafricaine – Jeune Afrique". JeuneAfrique.com (in French). 2021-02-22. Retrieved 2023-08-16.

Category:Finance

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