AfricInvest closes African midcap-focused fund at over $400m
AfricInvest, a number one funding platform lively in a number of different asset lessons together with non-public fairness, enterprise capital, non-public credit score and listed equities, has introduced the ultimate shut of its AfricInvest Fund IV with whole commitments of US$411 million.
During the last 25 years, AfricInvest has raised greater than US$2 billion to finance virtually 200 corporations at varied improvement levels throughout three continents.
Launched two years in the past with a tough cap of US$400 million, AfricInvest IV obtained funding from new and returning institutional buyers, improvement finance establishments and household workplaces from around the globe. The fund is the most important in AfricInvest’s historical past and follows on from the earlier flagship fund, AfricInvest III, which closed in 2016, reaching a fund dimension US$300 million.
Like its predecessors, AfricInvest IV goals to spend money on mature and worthwhile African mid-cap corporations throughout various sectors to speed up their regional development and ship enticing risk-adjusted returns. The fund additionally helps inclusive and sustainable improvement, having dedicated to the 2X Problem standards in assist of girls’s financial empowerment.
“AfricInvest Fund IV is well-positioned to proceed financing African corporations, supporting them as they turn into native and regional champions. Our native experience and perception permit us to generate proprietary offers to assist create long-term methods to ship worth for portfolio corporations,” mentioned Skander Oueslati, senior associate and CIO of Sub-Saharan Africa at AfricInvest.
Since its inception, AfricInvest IV has made three investments, the primary being the acquisition of a minority stake in Constancy Financial institution Ghana in mid-2020. The second, in 2021, was an funding in a merger of Compagnie Marocaine de Goutte à Goutte et de Pompage’s with Comptoir Agricole du Souss (“CAS”), creating CMGP-CAS, one in all Africa’s main irrigation and agribusiness corporations. The newest funding, in April 2022, noticed the Fund, alongside the Worldwide Finance Company, purchase a 36% stake in Kenya-based AutoXpress, the most important importer, distributor and retailer of tyres, auto-parts and equipment in East Africa.
“Mid-cap alternatives in Africa will proceed to develop. At AfricInvest, we’re prepared to speculate throughout the continent, partaking administration groups on to additional speed up their objectives of constructing worthwhile and sustainable companies whereas creating long-term impression,” mentioned Hakim Khelifa, the agency’s senior associate.