The Asset Manager That's Changing Angola's Venture Capital Landscape
A $600 million asset manager has made a significant investment in a startup, marking a major milestone in Angola's venture capital scene. BFA Asset Management, a Luanda-based firm, has invested $1.2 million in Anda, a mobility startup that aims to formalise Angola's motorcycle taxi market. This move is significant because it shows that Angola is slowly becoming a more attractive destination for investors. The country's sovereign wealth fund, FSDEA, had previously committed $5 million to BFA's Kimbo Fund, which is focused on small and mid-market companies.
The asset manager's approach is unique in that it takes a long-term view when investing in startups. Rui Oliveira, the CEO and co-chief investment officer, explained that the firm's due diligence process can take up to three years. This involves thorough research, including reviewing bank statements, interviewing suppliers and employees, and cross-referencing findings with international investors. The asset manager's local context and expertise give it an advantage when investing in startups.
BFA Asset Management's investment in Anda is part of its Kimbo Fund, which is a private equity vehicle that focuses on supporting mid-market and growth-market segments in Angola. The fund's first deployment was in FoodCare, an agri-food processor exporting to Europe and North America.
BFA Asset Management's investment in Anda highlights the potential for venture capital in Angola. By taking a long-term view and leveraging its local expertise, the firm is able to identify and support startups that have the potential to drive growth in the country's mid-market and growth-market segments. This approach could inspire other investors to take a closer look at Angola's startup ecosystem, potentially leading to more investments and growth in the country.
