AfricInvest, a pan-African asset management platform covering private equity, venture capital and private credit, has struck its second deal in as many weeks in the African insurance sector.
The firm has invested in Burkina Faso-based RAYNAL Assurances IARD, a leading non-life insurer in the country. The transaction has led to the exit of the pan-African financial group SUNU, one of the founding shareholders of RAYNAL.
The firm routed the transaction through AfricInvest FIVE, an evergreen investment vehicle dedicated to the financial services sector in Africa.
Last week, AfricInvest had acquired a minority stake in Nigeria’s Royal Exchange General Insurance Company (REGIC) through the same fund.
Ouagadougou-based RAYNAL was established in 2005 as a partnership between local entrepreneurs and SUNU. Since then, it has grown to become the third-largest non-life insurer in Burkina Faso with a market share exceeding 13%.
The company has developed a range of products and services by leveraging its expertise in the automotive, health, transport and fire multi-risk segments, and has built a strong distribution network of brokers and agents.
AfricInvest FIVE’s investment will seek to enhance this distribution model in order to broaden RAYNAL Assurances’ client base—currently at 100,000 end-users—and to address Burkina Faso’s unserved and underserved population, including a rural population of 15 million as well as 80,000 micro- and small- enterprises (MSMEs).
“With the support of AfricInvest FVIE and its deep financial sector knowledge across Africa, we will fast-track our digital transformation agenda to better serve our loyal customers and emerge as a leading institution in Burkina Faso and beyond,” said Seydou Diakité, founder and chairman of RAYNAL Assurances.
Omar Bekkali, partner at AfricInvest, will represent the fund on the board of RAYNAL Assurances.
For the transaction, CMS Francis Lefebvre advised on legal matters and Grant Thornton on financial and tax matters.
This is AfricInvest’s sixth PE deal. Besides, investing in REGIC recently, AfricInvest in July joined the cap table as Compagnie Marocaine de Goutte à Goutte et de Pompage’s and Comptoir Agricole du Souss completed a previously announced merger.
AfricInvest, which operates multiple funds including PE, credit and even a separate joint venture fund, had also backed two companies based in other continents that may have a potential Africa play—Spengler Holtex and Ragni.
It is also close to inking a deal via its Maghreb fund, as reported exclusively by The Capital Quest.