SilverStreet raises $198m from PKA and OPIC
UK-based SilverStreet Capital has received about $198 million in commitments to its Africa-focused fund from the Danish pension fund Pensionskassernes Administration (PKA) and the Overseas Private Investment Corporation (OPIC).
PKA has committed $47.9million (DKK250million) to the Silverland fund based on its expectation that Africa will develop to become the next centre of global growth. The pension company sees this as an opportunity to gain strong returns while making a positive impact in Africa.
OPIC has backed the fund with $150million, which is part of the $500million it has committed to five funds operating in the renewable resources sectors across Southeast Asia and Africa. Silverland is targeting $450million at final close, 50% higher than the $300 million upper target announced at inception.
Launched in 2010, Silverland will invest across the agricultural value chain, deploying a minimum of $2million to each deal. The fund is targeting annual returns of between 15% and 20%, with a term of up to nine years.
Silverland will predominantly deploy capital across Malawi, Mozambique, South Africa, Tanzania, Uganda, and Zambia. The fund will focus on primary production, backing businesses that farm grain, soya, fruits, vegetables, sugar, tea, and coffee.
The Silverland fund is offering a carry of 20%, with a 7% hurdle. Management fees have been set at 2% per annum on first $100 million and then 1% thereafter. The fund has been structured as a Luxembourg-based Société d’Investissement à Capital Risque (SICAR) vehicle. Dechert provided legal advice on the on the funds’ formation.
SilverStreet Capital is headed by founding partner Gary Vaughan-Smith [pictured].