Telco Deal: South African Vantage Capital Invests €66m in French-founded Camusat

Deal Summary

Vantage Capital, Africa's largest mezzanine fund manager, has invested €66 million in Camusat Holding S.A.S., a French-founded company specialising in telecommunications infrastructure and power systems. The funding aims to refinance debt and expand AktivCo, Camusat's Africa-focused energy services subsidiary. This investment is part of a larger €81 million mezzanine funding round that includes participation from Eurazeo, a leading European investment group. It marks Vantage Capital's 39th investment across four generations of funds, with a portfolio spanning 11 African countries.

Terms

• Fund Manager: Vantage Capital
• Fund: Vantage Mezzanine Fund IV?
• Target: Camusat Holding S.A.S?
• Deal Type: Mezzanine Debt
• Investment Amount: €66 million

Deal Rationale

Access to reliable electricity is crucial for consistent digital services and mobile coverage in Africa, where power infrastructure is underdeveloped. Established in 2015, AktivCo partners with telecom tower operators to outsource their energy supply and enhance efficiency by deploying, financing, and operating electricity assets through long-term contracts. Operating in Senegal, Niger, Chad, C?te d’Ivoire, Cameroon, Madagascar, and Burkina Faso, AktivCo focuses on solar solutions to replace diesel generators, reducing carbon footprints and improving service uptime.

Equistone Partners, a leading European mid-market private equity investor, partly own Camusat. Mergermarket has indicated that Equistone has plans to sell its majority stake in Camusat, with Macquarie Capital Advisers engaged in 2023. Camusat's revenue grew to €201 million in 2022 from €175 million when Equistone acquired it in 2016.?

• Market Opportunity: The African telecom infrastructure market is projected to grow at a 5.44% compound annual growth rate (CAGR) from 2024 to 2029, expanding from $63.17 billion to over $83.24 billion. With around 40% of African telecom towers still relying on diesel generators, there's significant potential for sustainable energy solutions. As telecom operators aim to reduce operational costs and align with decarbonisation efforts, demand for outsourced energy services like solar-powered solutions is expected to rise.?

• Risk/return Profile: The mezzanine structure provides Vantage Capital with downside protection through priority payments while retaining potential for equity-like returns. Long-term contracts with creditworthy telecom operators reduce default risk and offer stable cash flows, presenting a lower-risk investment in a challenging market. Historically, investments in African telecom infrastructure have yielded internal rates of return in the range of 15–20%, making the sector attractive for mezzanine investors seeking both stability and upside potential.?

About the Fund Manager

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