Quantum Partners Limited

Quantum's strategy is to focus on investing in or acquiring privately-owned companies in the areas of consumer goods, agri-business, financial services, energy, telecommunications, resources and manufacturing that have a significant business presence or operations in West Africa and/or the wider Sub-Saharan Africa region.

As home to vast untapped frontier markets, Sub-Saharan private equity has been largely overlooked by investors. However momentum is starting to pick up, with a three-fold growth in fundraising activity over the period 2005 to 2008, from US$800 million to $2.2 billion. Investor appetite has begun to increase as identified in the 2009 Emerging Markets Private Equity Association/Coller Capital Emerging Markets Private Equity Survey which saw 38% of its Limited Partners investing in Africa, up from 4% in 2006. Though much of the deal flow has been concentrated in South Africa, the deepening of other capital markets in the region has increased the attractiveness for private equity participants.

Secondly, the robust macroeconomic framework coupled with the decreased reliance on aid made the Sub-Saharan African region more resilient to the global economic downturn than witnessed historically. Whilst many economies experienced a slowdown, Sub-Saharan economies continued to grow, avoiding recessionary pressures. The IMF predicts a growth rate of 5.5%-6.0% for the region over 2011, moderately below the 8% average growth rate experienced over the last decade. With a population of 836 million generating a GDP of $920 billion, the opportunities to grow remain compelling.

And finally, the limited competition within the private equity space creates a greater opportunity set of underpriced assets; whilst the increasing breadth and depth of the Sub-Saharan capital markets provides an array of viable exit opportunities.