The Corporate Finance Transaction Advisory team at Genesis Analytics supported The Carlyle Group’s acquisition of a significant stake in Global Credit Ratings (GCR), a pan-African ratings agency with headquarters in Johannesburg.
Leveraging off the firm’s more than 15 years of experience across the financial sector in sub-Saharan Africa, the project team was able to provide Carlyle with commercial due diligence advisory services and an independent assessment of GCR’s business within the context of its core markets and segments.
With a 20-year track record, GCR is the largest ratings agency on the continent, serving over 400 customers. It operates in more than 20 African countries and its core offering is the provision of credit ratings in four segments: insurance; financial institutions; structured finance; and corporations and the public sector.
"We are delighted to have helped Carlyle make the decision to invest in GCR. Most African capital markets are nascent and there are limited opportunities to deploy long-term capital to the private sector. GCR could unlock value in the development of these markets by helping investors and issuers better understand risk," said Muhammed Hajat, a Senior Associate in the Financial Services Strategy practice at Genesis and heads up the Corporate Finance Transaction Advisory team.
As part of a strategic review of GCR, the Genesis team assessed the regulatory environment in South Africa, Kenya and Nigeria; the demand for credit rating services in each of these markets; and the competitive landscape, with specific reference to GCR’s market share and positioning relative to its peers. Based on the findings of these assessments, the project team created a comprehensive financial model to support the transaction that went through last month.
Our Corporate Finance Advisory Services covers the full investment cycle, from opportunity identification and mapping to capital raising; commercial and strategic due diligence; and post-acquisition strategic alignment.
We work closely with investors such as private equity firms, development finance institutions and corporates to determine the attractiveness of investments in new and existing markets throughout Africa. We also assist businesses that require additional capital by mapping out their funding options and preparing the collateral they need to approach investors. More Information
Muhammed Hajat, a Senior Associate in the Financial Services Strategy practice at Genesis, heads up the Corporate Finance Transaction Advisory team. He has completed a number of projects for a variety of clients including stock exchanges, banks, asset managers, non-bank financial institutions and private equity firms in 16 African countries. More on the Team
MORE ABOUT GCR
Global Credit Ratings covers the full spectrum of security classes, including corporate and public sector debt; financial institutions and funds; insurance; and structured finance and securitisation.
GCR is also a founder member of Europe-based ARC Ratings, which is registered with the European Securities and Markets Authority. In South Africa, the business is registered as a Credit Ratings Services Provider with the Financial Services Board (Licence No: CRA001).
GCR's core competitive advantage is its analytical excellence. The company’s unrivalled track record for ratings accuracy is evident in a national scale local currency cumulative investment grade default ratio of less than 3% over the past 10 years, notwithstanding emerging market crises and systemic shocks. GCR boasts a substantial subscriber base, including several local and international issuing and investing institutions and regulators.
GCR’s African regional headquarters are in Johannesburg, with SADC, West African and East African regional offices in Harare, Lagos and Nairobi respectively. A comprehensive details of the company’s products and services can be accessed at www.globalratings.net.
Marc Joffe, Chief Executive Officer, Global Credit Ratings