LLH Capital, led by South African investors Romeo Kumalo and Gil Oved, is preparing a new $200 million fund focused on artificial intelligence plays after a landmark exit from Optasia. The planned vehicle will invest in AI-driven businesses across Africa and, where compelling, in adjacent markets further afield. The move underscores how liquidity from high-profile listings is rotating into data and AI infrastructure that can scale across financial services, telecoms, and other essential sectors.
Optasia Exit Sets the Stage
The trigger for the raise is LLH Capital’s partial sell-down during Optasia’s debut on the Johannesburg Stock Exchange this week. The listing, described as Africa’s largest so far in 2025, provides a timely validation of the firm’s thesis around the convergence of telecoms and financial services. With Optasia’s public market reception, LLH Capital now has a marquee exit that it can leverage in fundraising conversations with limited partners seeking exposure to African technology.
Strategy and Model
Kumalo and Oved plan to apply an active investment model that pairs capital with operational support, governance, and network access. Their approach targets founder-led, high-growth companies that can compound value through disciplined execution and distribution advantages. The firm emphasizes hands-on stewardship to accelerate revenue growth, professionalize operations, and position portfolio companies for strategic exits or listings.
Fund Focus and Pipeline
The proposed $200 million vehicle will back companies using machine learning to solve persistent challenges such as credit access, digital identity, and logistics constraints. Investment themes are expected to include embedded finance, AI-enabled underwriting, and data platforms that modernize infrastructure across regulated and consumer markets. LLH Capital’s mandate also contemplates selective investments beyond the continent where technology and market dynamics align with its operating playbook.
Track Record and Background
Kumalo, a former senior executive at Vodacom, brings deep telecoms and cross-border operating experience that informs LLH Capital’s distribution-first lens. Oved, co-founder of The Creative Counsel that later sold to Publicis Groupe, contributes growth marketing, brand building, and commercial excellence capabilities. Their combined portfolio through various vehicles has included names such as Ozow, Bottles, Smart Call, Sendmarc, and Flow Living, alongside the Optasia stake that has now crystallized into public market liquidity.
Market Context
Investor interest in Africa’s AI opportunity set has broadened as datasets deepen, mobile penetration rises, and cloud costs normalize. Startups are deploying models to score thin-file consumers, optimize supply chains, and augment health screening, and these use cases benefit from the continent’s leapfrog adoption of mobile money and digital rails. The Optasia outcome adds weight to the view that AI-enabled credit and adjacent financial products can reach sustainable unit economics and public market scale.
Timing and Fundraising Outlook
Kumalo has indicated that the capital raise could be executed over the next 12 to 18 months, subject to market conditions and anchor commitments. The team will likely target a mix of African and global limited partners that are already underwriting AI-led productivity gains in emerging markets. With a recent exit and a recognizable GP duo, LLH Capital enters the market with momentum that can shorten diligence cycles and support a first close.
Competitive Positioning
The firm’s pitch centers on marrying AI capabilities with telecom and financial services distribution to accelerate adoption and reduce customer acquisition costs. In markets where data coverage and regulatory clarity can be uneven, the ability to work closely with management teams and incumbents is positioned as a differentiator. Access to corporate partnerships, experienced operating executives, and downstream capital are presented as levers that can compound returns beyond check size alone.
Risks and Considerations
Execution risk remains material in scaling AI in low-data or fragmented environments, particularly where model performance can degrade without robust feedback loops. Regulatory frameworks for AI-enabled credit and data privacy are evolving, and portfolio companies must invest early in compliance and risk management. Currency volatility and liquidity windows can also affect exit timing, which places a premium on building businesses with resilient cash flows and multiple paths to monetization.
LLH Capital’s upcoming $200 million AI fund reflects a pragmatic read of where value will accrue as African technology markets mature. A successful Optasia listing gives the firm both credibility and fresh dry powder to lean into AI-native models with real distribution. If the team converts its active ownership approach into scaled outcomes, the strategy could help define the next wave of African technology champions.
Source: Bloomberg