Africa-Focused Fundraising

by Louise Maddy

  • 26 Sep 2011
  • PE

Preqin’s Funds in Market product reveals there are currently 95 Africa-focused funds on the road seeking aggregate target capital of $35.9bn. Of these funds, just under half focus on Africa as part of a broader geographic focus and the remainder focus solely on investing in the continent. Growth funds are seeking the largest amount of capital, accounting for 20% of the aggregate capital being sought. Infrastructure and buyout vehicles are the next most significant fund types in the African-focused market, both seeking 16% each of the total targeted capital.

Just under half of Africa-focused funds currently in market are located in the continent, with 42 vehicles having Africa-based fund managers. 21 of these fund managers are based in South Africa, targeting an aggregate $6.5bn in capital.

The largest fund currently in market to incorporate Africa as part of a wider geographic focus is the Actis Emerging Markets 4 fund. The fund is investing in South America, Africa, Central America, China and India, as well as Africa. The vehicle is seeking $3.5bn for investments in a range of sectors including consumer, healthcare and restaurants. The fund launched in May 2011 and is managed by Actis, who are based in London and have four additional offices throughout Africa.

The largest Africa-focused fund to close so far in 2011 is the Helios Investors II fund that reached its hardcap of $900mn in June. The African-focused vehicle invests in Ghana, Kenya, Ivory Coast, Nigeria, Uganda, Tanzania and Angola, but will also consider other African countries on an opportunistic basis. The buyout fund invests in a range of industries including infrastructure, agriculture and telecoms.

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