Freshfields to target African private equity after Cape Town conference
Freshfields Bruckhaus Deringer has pledged to target private equity work in Africa as the firm hopes to capitalise on surging demand across the continent.
October 09, 2014 at 07:18 PM
3 minute read
Freshfields Bruckhaus Deringer has pledged to target private equity work in Africa as the firm hopes to capitalise on surging demand across the continent.
The new strategy emerged after the firm held a conference in Cape Town with its relationship teams across Africa, bringing together more than 30 senior and managing lawyers from its relationship firms with Freshfields partners including senior partner Will Lawes.
The firm, which is due to release a report on private equity trends in Africa next week, said that recent US hires, give it "a real edge" over US law firms when it comes to covering inbound investment into Africa for US corporates.
"We are not looking for lawyers who can simply give us a local legal opinion," said Geoff Nicholas, global markets partner and co-head of Freshfields' global investigations group. "We are looking for the people who can deliver the client service that private equity demands in any market it invests in.
"We are very comfortable we know who those partners are."
Typically, Freshfields works with specific individuals in two strong relationship firms in each African country. The firm currently has some 100 lawyers whose main work is focused on Africa, including 65 partners, a number which Nicholas expects to double in three years' time.
The firm boasts at least one relationship partner for every single African country, a strategy it plans to maintain in the near future.
"We have spent too much time on those relationships to just rotate them on an annual basis," said Shawn der Kinderen, co-head of Freshfields' Africa Group.
Other practice areas discussed at the conference were infrastructure investment, regulatory risk, anti-trust, as well as due diligence issues around human rights.
In addition to reviewing its sector focus, the firm is also looking to target key jurisdictions where client activity is focused, including Nigeria, Egypt, Kenya, Ghana and Ethiopia.
"You need to be flexible and respond to shifting patterns of trade and investment," added Nicholas. "On private equity specifically, South Africa is less of a hub than it was say 5 years ago."
Having identified Zimbabwe as a key country for growth last year, the firm is now taking a more cautious approach to the jurisdiction.
"Zimbabwe is one to watch," der Kinderen says. "The current political situation is not stable enough for international investments to be pouring in, but it is very rich in natural resources."
Earlier this week, fellow magic firm Allen & Overy announced it will open an office in Johannesburg later this month, making it the first firm in the elite club to set up its own practice in South Africa.
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