avca overview 2005

“Representing the Venture Capital and Private Equity Industry in Africa”

AVCA OVERVIEW2005

www.avcanet.com

Chairman:Mark JenningsTel: +27 11 268 6911Fax: +27 11 268 6917Email: [email protected]

Head Office:Sanda OumarouSecretary GeneralTel: +237 223 18 98Fax: +237 223 19 11Email: [email protected]

London Office:Barbara JamesManaging DirectorMobile: + 44 (0) 7730 420 713Fax: + 44 (0) 207 610 0473Email: [email protected]

TABLE OF CONTENTS

1. INTRODUCTION 3

2. AVCA’S OBJECTIVES 3

3. SPECIFIC INITIATIVES 4

4. MEMBERSHIP CRITERIA 5

4.1 GENERAL CRITERIA 54.2 FULL MEMBERSHIP 54.3 ASSOCIATE MEMBERSHIP 5

5. WHY BECOME A MEMBER 6

6. HOW TO BECOME A MEMBER 7

7. AVCA BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE 8

AVCA Overview 2005 of 8

1. INTRODUCTION

AVCA is a not-for-profit entity founded to promote, develop and stimulate private equity and venture capital in Africa. AVCA is committed to promoting high ethical standards of business conduct and professional competence in the private equity and venture capital industries.

Full Membership is open to private equity and venture capital firms and persons active in making significant equity investments in Africa.

Associate Membership applies to professional firms and individuals who can influence and/or support the development of private equity and venture capital in Africa. This includes, but is not limited to, development financial institutions, accountants, lawyers, consultants and advisers, banks, development organisations, pension funds, insurance companies, national private equity and venture capital associations, and organisations that invest in private equity as a minor part of their overall investment activities.

AVCA has a permanent Head Office in Yaoundé, Cameroon staffed by a part-time Secretary General, Sanda Oumarou and a full-time assistant, Manka Mancho. There is an Executive Committee of nine members drawn from across the continent and internationally. AVCA also has a London office staffed by a Managing Director, Barbara James and part-time assistants.

2. AVCA’S OBJECTIVES

The main objectives of AVCA are to:

Promote the venture capital and private equity profession in Africa

Promote the development of professional relationships and cooperation

amongst its members

Represent the profession within Africa and internationally

Stimulate the expansion of venture capital and private equity throughout

Africa

Collect information from markets and from members

Circulate information to members and the outside world

Stimulate and maintain contacts within the membership

Contribute to the management development of investors and investees

Provide the relevant authorities with proposals for improvement in the

corporate, fiscal and legal environment for venture capital and private

equity in Africa

Maintain ethical and professional standards.


3. SPECIFIC INITIATIVES Membership

o Recruit new memberso Review membership fee structureo Publish AVCA 2005 Members Directory

Conferenceo Organise the 5th AVCA Annual Conference in Kenya in

November 2005

Trainingo Provide a foundation training course for members

Valuationso Review and endorse the International Private Equity Valuation

Guidelines

Research and Publicationso Upgrade the AVCA websiteo Publish a Quarterly AVCA Newslettero Publish the following

1st AVCA Yearbook 1st AVCA Investment Activity Yearbook A Guide to Private Equity and Venture Capital in Africa Who’s Who in Private Equity and Venture Capital in

Africa Case Studies in Private Equity and Venture Capital in

Africa Economic and Social Development Impact of Private

Equity and Venture Capital in Africa

Advocacyo Participate in international policy debates E.g. UK Commission for

Africao Identify improvements in the policy environment for pe/vc in Africao UN MDG One in Ten Target – articulating the industries target

contribution to the Millennium Development Goals in Africa

Raise AVCA’s Profileo Identify AVCA stakeholders and raise AVCA’s profile within the

stakeholder groups

Relationship with other VCA’so Develop and maintain collaborative relationships with African and

other Venture Capital Associations


4. MEMBERSHIP CRITERIA

The requirements for AVCA membership include general criteria that apply to all members and specific criteria for each membership category.

4.1 GENERAL CRITERIA

An applicant must:

Have an active involvement in private equity or venture capital Be of good standing in the private equity or venture capital communities Agree to abide by the AVCA Articles of Association and Code of Conduct

4.2 FULL MEMBERSHIP

Full membership is open to organisations and individuals: Who can prove substantial activity in the management of equity or quasi

equity financing Whose main objective is long term capital gains to remunerate risks Who have significant activities and investments located in Africa Who can provide active management support to investees

4.3 ASSOCIATE MEMBERSHIP

Associate membership is open to firms or individuals that can influence the development of private equity and venture capital in Africa.

Organisations eligible to become Associate members include, but are not limited to, banks, universities, development capital organisations, consultants, financial advisers, stockbrokers, pension funds, insurance companies, development organisations and associations, private individuals and national associations for venture capitalists.


5. WHY BECOME A MEMBER

As a member of AVCA you will benefit from the power of association.

The Association fulfils an important role that is best carried out as a collective body of industry practitioners and stakeholders. AVCA activities such as the Annual Conference, Quarterly Newsletter, Annual Yearbook and other initiatives are important and necessary components of a growing industry and together the Association can deliver these - spreading the financial costs, providing a representative and objective perspective and strengthening the credibility of these initiatives. Together the Association provides a financial, objective and credible base with which to build the industry - together we are stronger and can achieve much more.

The Association establishes an identity for the industry. It allows interested stakeholders identify African private equity fund managers, investors and service providers. The website, Quarterly Newsletter, Members Directory and Annual Conference reinforce this identity.

The Association offers networking opportunities for members and stakeholders. The Annual Conference and other planned events offer excellent networking opportunities to members.

The Association creates awareness of the industries existence, structure, growth, performance, opportunities and other insights. This broad industry view is essential background for new and existing investors. Fund Managers looking to raise funds from new investor groups will have a much stronger proposition if their proposals include the kind of industry overview and analysis that the Association provides. The Associations current and planned industry research and publications are an important fundraising tool.

The Association demonstrates the economic and social impact of the industry to African economies, and builds the case for favourable regulatory policies such as tax incentives, technical assistance and cutting red tape. The Association is an effective voice for the industry, learning from the example of other regional and country associations; it harnesses the collective strength of its members and stakeholders to create an enabling policy environment, in Africa and internationally, for private equity to flourish.

The Association provides training and coaching for members and other stakeholders, to build capacity in the industry.

The Association is able to address market inefficiencies within the industry. Where market efficiencies affect the industry as a whole; members can draw on the resources of the Association to address them. The proposed deals database is an example of a mechanism to identify and syndicate deals.

The Association can identify and engage industry stakeholders. Stakeholder groups include media, investors, capital markets, entrepreneurs and service providers including lawyers, bankers, accountants and consultants. The Association can help stakeholders understand the industry and its needs from stake holders, and also communicate stakeholders’ needs from the industry.

In addition, members enjoy financial benefits including discounts on AVCA events and publications and discounts on events and resources from AVCA partners such as Thomson Venture Economics.


6. HOW TO BECOME A MEMBER

An AVCA Membership Application Form, Articles of Association and the Code of Conduct is enclosed. Alternatively, contact the AVCA General Secretary for an application form and related documents or download a copy from the AVCA website (www.avcanet.com).

The application form should be completed and submitted to the AVCA Secretary General ([email protected]) for approval by the AVCA Executive Committee.

The AVCA secretariat will be in contact with you to inform you of the outcome of your application as soon as possible. For more information on AVCA and its activities, contact:

Mark JenningsAVCA ChairmanEmail: [email protected]

OR

Sanda OumarouAVCA Secretary GeneralEmail: [email protected]

OR

Barbara JamesAVCA Managing DirectorEmail: [email protected]


mailto:[email protected]

7. AVCA BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE

AVCA Secretary GeneralSanda OumarouTel: +237 223 18 98Fax: +237 223 19 11Email: [email protected]

Executive Committee

Mark Jennings (Chairperson AVCA)Zephyr Africa, Johannesburg, South AfricaTel: +27 11 268 6911Fax: +27 11 268 6917Email: [email protected]

Aziz Mebarek, (Vice-Chairperson AVCA) Tuninvest, TunisiaTel: +216 71 862 311Fax: +216 71 862 805Email: [email protected]

Alamine Ousmane (Treasurer AVCA)Cenainvest, Yaoundé, CameroonTel: +237 770 4828Fax: +237 223 9155Email: [email protected]

Barbara James (Managing Director)AVCA LondonTel: +44 (0) 7730 420 713Fax:+44 (0) 207 610 0464Email: [email protected]

Edward Effah (Membership)Fidelity Group, Accra, GhanaTel: +233 21 245 850Fax: +233 21 245 851Email: [email protected]

Rotimi Oyekanmi (Advocacy)African Capital AllianceTel : +234 1 262 52 38Fax : +234 1 262 52 38 ext. 111Email : rotimi @can-aca.com

Piers Kenyon (Publications)Equity Africa, Johannesburg, South AfricaTel: +27 11 646 1390Fax: +27 11 646 13 25Email: [email protected]

Tshepidi Moremong (Training)Aureos Capital S.ATel: +27 11 884 2066Fax: +27 11 884 2067Email: [email protected]

Davinder Sikand (2005 Conference)Aureos Capital, KenyaTel: +254 20 228 870Fax: +254 20 33 01 20Email: [email protected]

Enquiries can be directed to the Secretary General or:


North Africa: Aziz Mebarek West Africa: Edward Effah or Rotimi OyekanmiSouth Africa: Piers Kenyon, Mark Jennings or Tshepidi MoremongCentral Africa: Alamine OusmaneEast Africa: Davinder SikandEurope/ World: Barbara James










avca overview 2005

Economy & Finance