Dubai: The Abraaj Group said on Tuesday it has sold its investments in Colombia based Koba International for an undisclosed amount to Capital Group Private Markets.
Koba is the fifth exit from Abraaj group’s fund, which invested predominantly in Mexico, Colombia and Peru. Capital Group Private Markets made its investment through a $3 billion fund focused on building a diversified global emerging markets private equity portfolio, The Abraaj Group said in a statement.
“Our exit supports the Abraaj investment thesis of combining our financial and operating experience across growth markets with well managed companies who are positioned for success. Koba’s accomplishments have been exceptional and we wish our former partners, management, and Capital Group Private Markets every success for the future,” stated Daniel Wasserman, Managing Director of The Abraaj Group in Colombia.
Koba operates chain of D1 supermarkets in Colombia and it is the leading hard discount retailer in the country, providing high quality basic staples at the lowest prices. Abraaj invested in Koba in 2010 when the company had just started operations with 20 stores. During its tenure as a shareholder in Koba, Abraaj introduced significant corporate governance and organisational enhancements, bringing in other institutional investors to help fund the accelerated growth. Currently, Koba has almost 500 stores, over 5,000 employees and serves close to 10 million customers per month. Six years on from Abraaj’s investment, Koba is one of the most dynamic players in the Colombian retail space.
“Koba and D1 [the supermarket chain] are very well positioned to build on their existing success. There is a tremendous opportunity for D1 to continue to expand across Colombia, given its strong local brand, impressive track-record on execution, and customer recognition. We are glad to have the opportunity to work with Koba as it enters this important next stage of growth,” Martin Diaz Plata, Managing Partner of Capital Group Private Markets, said.
The Abraaj Group currently manages $10 billion across targeted investment strategies. Abraaj has realised $6.3 billion from over 80 full exits, and Funds managed by the Group have made over 170 investments across a range of sectors including consumer, energy, financials, health care and utilities.