Adventis has agreed to purchase Africa Merchant Capital’s investment management business, which manages the Africa Merchant Sub-Sahara Fund. The public equity fund will be rebranded as the Adventis Africa Equity Fund. The fund has a strong track record with top quartile performance over a three year period to December 2017. The fund will continue to be managed by its founding portfolio manager Jonathan Kruger, who is supported by Michael Ashaolu as lead analyst on the fund. Jonathan Kruger will remain as a shareholder and director in the public equity business. The team has been particularly successful at finding unique investment opportunities that aren’t held in most other African equity mandates. Joseph Rohm will sit on the Investment Committee and bring his extensive experience to the fund management. The fund mandate will be enhanced by broadening the investment universe to include North Africa.
Rohm: “Adventis gains the skills of two highly talented investment professionals, Jonathan Kruger and Michael Ashaolu. The fund is currently trading at very attractive valuations, and over the coming decade I expect the Adventis Africa Equity Fund to take advantage of the increasing number of attractive equity investment opportunities on the continent.”
Kruger: “We are excited about the opportunity that bringing the fund under Adventis brings. We see Adventis’ broad corporate and investor networks, and Joseph Rohm’s extensive investment experience as value enhancing for the fund and public equity business. Adventis’ dedicated African asset management focus and entrepreneurial culture makes it a good strategic fit.”
Adventis has agreed a joint venture with Saffron Wealth to promote the Adventis Africa Enhanced Income Fund. The fund is a debt fund that invests predominantly in USD African instruments. The fund was launched in March 2014, and has a strong institutional track record. Brandon Quinn will continue as portfolio manager of the fund, and will be supported by Anina Swiegers, who continues as lead analyst. Adventis benefits from the robust investment process and African macro-economic analysis at Saffron Wealth.
Rohm: “We are excited about joining forces with a dynamic investment boutique, such as Saffron Wealth, in growing the Adventis Africa Enhanced Income Fund. They have a strong investment culture and a well tested investment process that is complementary to ours.”
Quinn: “We can benefit from Adventis’ African investment experience and broad network. We will have access to Adventis deal flow, which will allow us to differentiate the fund, by accessing new investment opportunities that other investors can’t easily access.”
The launch of these two funds provides attractive synergies and strong support for the Adventis Africa Financial Sector Deepening Fund, which is a local currency African debt fund. The fund is highly innovative in its approach to lend in long dated local currency to the top quality banks on the African continent. The Africa Financial Sector Deepening Fund, will be managed by Joseph Rohm, Managing Director of Adventis, and supported by co-portfolio manager, Michael Waller.
These two transactions give Adventis a clear competitive advantage in African asset management. The company believes it will be able to generate attractive sustainable performance through; having a highly experienced multi-talented team, proven investment process, established on the ground networks, strong research capabilities, and complementary asset management and capital markets experience.