To Be Updated For Fall 2013 – SUBJECT TO CHANGE
Private Equity and Entrepreneurship in Africa
Professors Paul Tierney and Murray Low
Fall 2012
All sessions held on Monday, 9 – 12:15. Classroom TBD
Entrepreneurship and Private Equity in Africa (EA) examines how entrepreneurs and
those who invest in them design, negotiate and execute ventures that make use of
resources and opportunities in the challenging environments of Northern and subSaharan Africa. The Africa context will be compared and contrasted with that of other
emerging markets and the developed world.
The course has two specific learning objectives which we frame as questions: First,
what does it take to be a successful entrepreneur in Africa? We will place significant
emphasis on the challenges of raising financing. Second, what does it take to run a
successful venture capital or private equity fund in Africa? We will view these funds
themselves as entrepreneurial ventures.
Through case studies, lectures and guest speakers, students learn about successful and
unsuccessful entrepreneurs and financiers. Students work in teams to complete a major
project. The project can be either a consulting assignment negotiated with an African
entrepreneur or investment company, or a case study about an entrepreneur or
investment company that can be used for teaching purposes.
The best of the completed case studies will be edited by Columbia Case Works and will
be made available to other business schools in Africa and the west. Development of
African case studies is an important part of Columbia’s African Initiative. Students
choosing to the case study option will also write a confidential memo to the
entrepreneur or investment company providing observations and advice based upon
their research.
All students are expected to travel to Africa at their own expense for two weeks during
the winter break to conduct field research. A comprehensive draft of the final project is
due December 1. The final project is due late January 2012.
During the semester, students are requested to keep a journal and record insights from
each of the speakers on the two key questions: 1) What does it take to be a successful
entrepreneur in Africa? 2) What does it take to run a successful venture capital or
private equity fund in Africa? At the end of the term (12/10/2012) students are required
to submit an individual 2-3 page paper that summarizes key learnings.
Grading:
Class Participation:
40%
Final review paper & quizzes:
20%
Final project:
40%
+ Beatles (mutual evaluation of team member’s contribution to final project)
Session 1
9/12
Part One
Introduction and Overview
Review of potential projects
Lecture:
What is Private Equity in Africa?
Reading:
A Note on Private Equity in Developing Countries
Part Two
Case Study:
Continental Outdoor Case Study
Investment Proposal Outdoor Advertising
Guest Speaker:
Mark Hartmann, CIO
Helios Capital African PE Fund
Session 2
9/19
Part One
Project Selection
Lecture:
Private Equity Terms and Structure
Reading:
Private Equity Glossary
A Note on Private Equity Partnership Agreements
Case Study:
Computer Warehouse
Part Two
Guest Speaker:
Kofi Bucknor, Managing Partner
Kingdom Zephyr Africa Management
Session 3
9/26
Part One
Lecture:
Private Equity Securities and the Fundraising Process
Readings:
A Note on Private Equity Securities
A Note on the Private Equity Fundraising Process
Case Study:
Metalex
Part Two
Case Study:
Equity Bank: The Real Thing?
Guest Speaker:
James Mwangi, Managing Director & CEO
Equity Bank Limited
Session 4
10/3
Part One
Teams meet individually with Professors.
Balance of class time to be used by teams for project work
Part Two
Case Study:
Imara/Batian PE for SMEs
Guest Speaker:
Mark Tunmer, CEO
Imara Holdings
Session 5
10/10
Part One
Guest Speaker:
Ram Karuturi, CEO
Karuturi Global
Part Two
Reading:
A Note on Valuation of Venture Capital Deals
A Note on Valuation in Private Equity Settings
Case Study:
Karma Oil
Guest Speaker:
Jeff Harris, Partner
Warburg Pincus
Session 6
10/17
Part One
Lecture:
Due Diligence
Reading:
Helios Investment Partners Investment Process
Case Study:
Banana Investments
Part Two
Update on Student Projects
Session 7
10/31
Part One
Case Study:
East of Africa (and West of China): Chinese Business
in Africa
Reading:
The Dragon’s Gift – Chapter 5: Orient Express: How
Does Chinese Aid and Engagement Work?
The Dragon’s Gift – Chapter 11: Rogue Donor? Myths
and Realities
Guest Speaker:
Jack Perkowski
Founder & Managing Partner
JFP Holdings
Part Two
Case Study:
Data Bank
Guest Speaker:
Ken Ofori-Atta
MD, Data Bank
Session 8
11/14
Part One
Lecture:
Private Equity / Cross-Over Investors
Reading:
A Note on Venture Leasing Industry
Guest Speaker:
Bruce McNamer
Pres. & CEO
TechnoServe, Inc.
Part Two
Guest Speaker:
Joe Kawkabani
MD, Algebra Capital
Session 9
11/21
Part One
Case Study:
Makalani – Growing a South African Mezzanine Fund
Part Two
Case Study:
Aureos
Guest Speaker:
Sev Vettivetpillai, CEO
Aureos Capital
Session 10
11/28
Part One
Student Presentations
Part Two
Case Study:
Gray Security
Guest Speaker:
Tom Barry
Pres. & CEO
Zephyr Management
Session 11
12/05
Part One
Case Study:
Busy Internet
Part Two
Student Presentations
Session 12
12/12
Part One
Guest Speaker:
Valentine Chitalu
Chairman, MTN (Zambia),
Lomax & Phatisa
Part Two
Student Presentations