Hospitality investment platform, Kasada Capital Management is making moves to capitalize on Sub-Saharan Africa’s expanding business environment. As part of its plan, the company has reached a first close on its maiden fund known as the ‘Kasada Hospitality Fund LP’ with equity commitments of over $500 million.
This is in line with a first announcement disclosed in July 2018 by Katara Hospitality and Accor, who are respectively contributing $350 million and $150 million. The fund will target both Greenfield and brownfield projects.
A Greenfield project refers to work which is not following a prior project. In terms of infrastructure, projects on unused land where there is no need to remodel or demolish an existing structure are called Greenfield Projects. The projects which are modified or upgraded are known as brownfield projects.
Recent data indicates that the hospitality market is currently one of the most promising and yet underserviced sectors in Sub-Saharan Africa where growing economies and emerging middle class are creating high-growth markets that are left largely untapped.
The first platform of its kind in Sub-Saharan Africa, Kasada Capital Management intends to bridge the gap between the local hospitality market players and international investors.
The team is co-led by CEO and Managing Partner Olivier Granet, a former CEO of AccorHotels Middle East and Africa and CIO and Managing Partner David Damiba, a former partner at Helios Investment Partners.
Granet has over 20 years of experience in the hospitality industry at Accor where he was last responsible for a portfolio of over 200 hotels across 30 countries. Damiba has 25 years of experience in investing across the capital structure in developed and African markets, including at Helios, where he specialized in structured credit investments with equity upside.
Together, they will put in place a unique team of professionals combining world class experience from the hospitality industry, private equity and financing sectors underpinned by track record in the African market.
“There is an incredible opportunity ahead to try out an innovative hospitality investment platform in the region,” Granet explained.
“While in other parts of the world such initiatives are already thriving, they do not exist with critical size and integrated structure in Sub-Saharan Africa. The time is now for bold strategies to be implemented,” he continued.
“This is the best structure to address the needs of the region, develop attractive products and reach critical mass quickly to take a leadership position. I believe that our team of professionals combining experts from project financing to hotel management all with a solid local knowledge is exceptionally well placed to succeed,” Granet concluded.