AMBIT PARTNERS-BACKED SEARCH FUND CONCLUDES FIRST-EVER ACQUISITION IN AFRICA
1 September 2021
Cape Town - Last month, Africa Search Capital (ASC), an Ambit Partners-backed Search Fund, announced the acquisition of a majority interest in Falcon Security Hub (Falcon), the leading electronic security business in Ivory Coast. The transaction, which culminated a 12-month search process for ASC, is the first successful acquisition by a traditional Search Fund in Africa.
Yves Biyah, founder and Managing Partner of ASC, stated: “Falcon is recognized as the market leader in electronic security, integrating best-in-class global technologies to deliver tailor-made solutions that enable clients to reduce cost, increase productivity and improve safety. The company has developed a compelling value proposition, a blue-chip client base, and an exceptional reputation - and is otherwise an ideal Search Fund target. Personally, I am pleased to be taking over the company, honoured to preserve the founder’s legacy, and excited to collaborate with the Falcon team on this next phase of growth.”
Rob LeBlanc, co-founder and Managing Partner of Ambit Partners added: “We’re proud of Yves’ effort throughout his search process, and excited by the Falcon opportunity.” Mr LeBlanc will join the Falcon board as part of the transaction, supporting Mr Biyah in his new role as Falcon CEO.
The transaction brought together experienced international Search Fund investors, with leading local Ivorian co-investors. Will Thorndike, the longtime American Search Fund investor, who is an investor in Falcon, commented: “Search Funds in emerging markets like Ivory Coast represent a very dynamic opportunity. Valuations are often lower and very long term growth prospects higher - and, as with Falcon, it is possible to occasionally identify business models that have been highly successful in other more mature markets that are in much earlier stages in their development, which can be compelling.”
Eric Kacou, co-founder of ESPartners, a leading African consultancy, commented on his rationale for participating as a co-investor, and also joining the Falcon board: “I was impressed by Yves' ability to identify such a compelling opportunity so quickly, and to raise acquisition debt from a local bank, which, to my knowledge, is unprecedented for a transaction of this size in Ivory Coast. I’m excited to help Yves on his transition into the CEO role, and likewise curious to support other Search Funds in the region.”
Jamie Turner, one of the first-ever Searchers in the US, and now an active global Search Fund investor, is likewise co-investing, and joining Messrs LeBlanc and Kacou, as well as Jean-Louis Ekra, an Ivorian banking and insurance executive, on the Falcon board. He noted: “Searching first in any market is hard, let alone a frontier market through a global pandemic, and Yves has executed on his West Africa strategy with impressive skill, grit and resourcefulness. Falcon is a great opportunity, and I’m excited to share my experience with Yves to maximize his chances of success.”
Mr LeBlanc concluded: “We’re thrilled for Yves, humbled by the opportunity to support him, along with our co-investors, in acquiring Falcon, and poised to support him in leading Falcon as CEO. We’re also hopeful that this transaction creates an early precedent for Search Funds on the African continent, and that aspiring African Searchers are encouraged to follow in Yves’ footsteps.”
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Ambit Partners’ mission is to enable Search Funds globally, investing in exceptional entrepreneurs to find, buy and build enduring businesses, especially in emerging markets. Founded in 2020, with offices in Canada and South Africa, the firm has invested private capital in dozens of Search Funds across North America, Europe, Latin America, Asia and Africa.
Africa Search Capital (ASC) is a traditional Search Fund, established to identify, acquire and operate a single business in West Africa over the long-term. Ambit Partners invested in ASC in July 2020.
Falcon Security Hub (Falcon) is a leading electronic security business in Ivory Coast. ASC acquired a majority interest in Falcon in August 2021. Founder, Stephen Capraruolo, retains a minority interest and will remain active in the business.
Contact: info@ambit.partners
Additional media
Business Insider Africa: Africa Search Capital Acquires Falcon Security Hub
africanews: Africa Search Capital Acquires Falcon Security Hub
Magazine de l’Afrique (français): Africa Search Capital acquiert Falcon Security Hub
Jeune Afrique Business+(français): Asafo & Co. conseil d’Africa Search Capital pour sa première opération