1K Africa Announces Investment In South African Agribusiness Sector

Investment by Sub-Saharan Africa-focused private capital fund in RedSun, a leading South African raisin processing company, targets top returns and job creation

JOHANNESBURG, South Africa (FEBRUARY 2, 2015) – 1K Africa, a private family capital fund focused on Sub-Saharan Africa, today announced an investment by its 1K Africa Fund I, L.P. in the South African agribusiness sector. The investee company is RedSun Dried Fruit & Nuts (Pty) Limited, a privately-owned processor and distributor of high-quality raisins in the Northern Cape Province of South Africa.

The investment is 1K Africa’ first in the agribusiness processing and distribution sector. It will help RedSun to expand its reach and market share in the rapidly growing dried fruit and nut market, which continues to grow as global food demand increases. While prices for raisins have remained relatively stable, average global consumption of raisins has increased by 17% from 2008 to 2013. Given that South Africa is a low cost producer of high quality raisins, global demand for South African raisins continues to increase as worldwide consumption increases. Sub-Saharan Africa’s large amount of underutilized arable land, coupled with increased demand for agricultural products worldwide, positions agribusiness to be a key driver of the region’s economic development. As a consequence of the Fund’s investment, RedSun expects to double its current workforce over the next year, as well as create a significant number of indirect jobs.

1K Africa commenced operations in 2014 after being announced at the World Economic Forum on Africa in the prior year. The fund is designed to offer a new investment model that enhances traditional private equity – the Relational Capital, Intellectual Capital and Patient Financial Capital – of leading families who offer investee companies access to their business relationships in their respective industries and geographies, as well as their business insights and expertise. With its investor base comprised of influential families spanning multiple industries, 1K Africa intends to deploy $300 million across Sub-Saharan Africa.

RedSun, whose products include varieties of golden, Thompson and sultana raisins produced along the banks of the Orange River, has a strong history of growth. Since inception, the company has become one of the four largest processors in South Africa, producing up to 7,225 tons annually, of which over 95% have been sold to the export markets in Europe, North America, South America and the Far East. RedSun is located in Keimoes, 40 kilometers southwest of Upington on the Orange River. The area – covered by rich, fertile soils and with ideal climatic conditions — has a long history of raisin production and is where the long-established tradition of producing raisins in South Africa was started.

“Inherent in our new private investment model is a highly discerning investment approach that targets top returns and job creation,” said Hendrik Jordaan, President and Chief Executive Officer of 1K Africa. “After an extensive evaluation of a significant number of investee companies, we chose to invest in RedSun because it is a leading company in one of Sub-Saharan Africa’s fastest-growing and most important sectors and is very well positioned to benefit from our model.”

“RedSun has an exceptional reputation for processing quality products, which has enabled our track record of success in our home market,” said Peter Kuilman, CEO of RedSun, who has been in the export raisin processing industry and dried fruit and nut industry for more than 17 years. “This investment offers a valuable opportunity for us to actively collaborate with 1K Africa highly skilled private family capital team on the ground in South Africa and leverage the unique Intellectual and Relational Capital of some of the world’s leading families to continue igniting our growth in domestic and international markets.”

About 1K Africa

1K Africa is a private family capital fund investing in Sub-Saharan Africa. The fund is designed to take the best of what private equity investment has to offer and enhance it with capital from influential families to target higher returns, lower risk and greater job creation. For more information, please visit www.1kafrica.net.

About RedSun

RedSun Dried Fruit & Nuts (Pty) Limited is a privately owned processor of high-quality raisins produced along the banks of the Orange River in the Northern Cape of the Republic of South Africa. Since inception, RedSun has grown rapidly, processing up to 7,225 tons of high-quality raisins annually, of which over 95% have been sold to the export markets in Europe, North America, South America and the Far East. For more information, please visit www.redsun.co.za/.

Company Contact:
+1.720.407.8220
info@1kafrica.net