Delta Partners looks for telecoms investment opportunities in Africa

Mergers, Acquisitions and Financial Results

Specialised telecoms and media investment and advisory company Delta Partners has opened an office in South Africa and is actively looking for investment opportunities in the African telecoms sector. The company typically will invest around US$8-15 million for a minority or majority position and will look to exit after 4-5 years, although its maximum investment period is seven years.

In broad terms it is looking at network build companies, tower management companies and specialist retail service providers. Exit would usually be through an IPO or sale to another investor. Puelinckz says it opened an office in South Africa "to be closer to both financial and investment opportunities." It has a fund of US$80 million and expects to set up a second fund shortly.

Media is a smaller part of its focus than telecoms but it expects to invest about 70-80% of its funds in telecoms-related businesses with the balance going into media. But as Puelinckz observes "there's a lot of covergence." So what's it looking for? "We want companies with a track record, strong management, cash flow and a presence in more than 2-3 countries." On its advisory side it can provide strong support through a network of over 100 people.