ECP Private Equity - Emerging Capital Partners

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15-Jun-2007


WASHINGTON, D.C. – (June 15, 2007) – Emerging Capital Partners LLC (ECP), an international private equity firm focused on investing across the African continent, today announced the sale of its entire position in Ecobank Transnational Incorporated (Ecobank), one of the largest regional banking groups in sub-Saharan Africa.  The investment was made through EMP Africa Fund II PCC (Africa Fund II), with the total proceeds of $35.9 million representing 3x the fund's initial investment of $11.8 million in April of 2006. The sale followed Ecobank's successful listing in September 2006. 

"The sale of ECP's position in Ecobank marks Africa Fund II's first exit from a highly successful venture in the African financial services market," said Hurley Doddy, chief operating officer of ECP.  "Recent and upcoming regulatory reform has created tremendous opportunities for Ecobank, strengthening and expanding its market position in sub-Saharan Africa.  ECP continues to see great potential in the African financial services sector, with Africa Fund II having already made four investments in banking and reinsurance companies."

Ecobank was incorporated in Lomé, Togo in 1985, and was the first privately-owned regional commercial bank in West Africa.  The company has since grown to be the 15th largest banking group in sub-Saharan Africa, operating in 18 West and Central African countries.  Ecobank's subsidiaries primarily engage in consumer, institutional and investment banking, with a focus on institutional banking.  In September 2006, Ecobank became the first bank in West Africa to successfully list on three national exchanges: the BRVM in Cote d'Ivoire, NSE in Nigeria, and GSE in Ghana.

"ECP uses its extensive local network and visibility into African markets to select companies that will deliver superior returns on private equity investments," Doddy said.  "Within the financial services sector, we have invested in several companies which are uniquely positioned to capitalize on the substantial growth in the market.  Our successful exit from Ecobank demonstrates ECP's ability to combine our local insight with disciplined investing to produce superior returns."

ECP's Africa Fund II continues to hold stakes in three additional financial services companies: a control position in Continental Reinsurance Plc, Nigeria's largest reinsurance company which recently completed a successful listing on the Nigerian Stock Exchange; African Financial Holdings, a prominent banking group with eight subsidiaries across Africa operating under the Bank of Africa brand name; and Intercontinental Bank Plc, the fifth largest banking group in Nigeria. 



Additionally, another ECP managed fund, the West Africa Growth Sicar (WAGS), was an early investor in Ecobank.  ECP managed the investment following its acquisition of the WAGS management company in 2005 and arranged a staggered exit, yielding 4.4x the fund's initial investment.

Exotix Limited, a UK-based agency, brokered the deal. 


ABOUT ECP
Emerging Capital Partners (ECP) is the first private equity firm to raise more than $1 billion to invest in companies across the African continent.  The ECP team has a seven-year track record of pan-African investing through five successful funds.  The firm's investment strategy is focused on delivering consistently above-market returns to investors that are uncorrelated to the U.S. and other global economies.  For more information, please see www.ecpinvestments.com.


CONTACT
Jeannine Lewan, FD for ECP
212-850-5612
jeannine.lewan@fd.com