HomeBusinessBrainworks eyes more advisory deals

Brainworks eyes more advisory deals


PRIVATE equity investment and advisory firm Brainworks Capital says it will continue seeking value creative investment and advisory opportunities buoyed by works in the BancABC-Atlas Mara deal.


Brainworks acted as advisors when Atlas Mara — co-founded by Bob Diamond and Ashish Thakkar — acquired a controlling shareholding in pan-African banking group, BancABC.

“The advisory business opportunities also look promising and the closure of the Atlas Mara acquisition of a majority stake in ABCH [African Banking Corporation Holdings] is testimony of this,” Brainworks said in its interim results.

Brainworks said its strategy of co-investing with strong international operating partners was showing “significant signs of success as we are gradually seeing a growth in profitability in our investee companies, particularly in our commercial banking and consumer finance businesses”.

The company has 29,4% shareholding in Ecobank Zimbabwe, a local commercial bank. Other shareholders of the bank are Togo-headquartered Ecobank Transnational International (70%) and Ecobank Share Trust (0,6%).

In the six months to June, Ecobank Zimbabwe saw its net operating income growing by 14% on the back of increased trade finance activities, reduced cost of funds and an increased customer base driven by a wider network of branches and ATMs.

The bank also benefited from credit lines worth $28 million from within the Ecobank Group.

Brainworks has 40% in consumer finance company, GetBucks Financial Services Zimbabwe Limited. GetBucks’ other shareholders are GetBucks Limited (55%) and Brainworks Nominees with a 5% stake.

Brainworks said efforts to turn around the hospitality and real estate businesses in its portfolio were underway and the company was expecting positive results.

Through Lengrah Investments, Brainworks has 43,55% in hospitality group African Sun.

It indirectly holds 30% in Dawn Properties.

In its interim financial report, Brainworks generated revenue of $3,26 million from advisory fees, dividends, interest income, share of associate income and logistics revenue. This was up from $1,3 million in the comparable period in 2013.

Profit before tax of $1,2 million was up from a loss of $44 473 in the comparable period in 2013.

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