DEG Invest (DEG), the Germany-based government agency with EUR 4.6 billion in assets, has invested USD 12.8 million in the Africa Joint Investment Fund, a private equity buyout fund with a focus on Africa and in particular North Africa. DEG’s private equity investments in Africa have encompassed North Africa (in particular Egypt), East Africa, West Africa and Southern Africa, excluding Zimbabwe. The promotion of the private sector in Africa is a long-established strategic aim for the firm, with nearly one-fifth of its investments in the last five years committed to the region. The government agency is encouraged by the macroeconomic growth happening in these regions.
DEG prefers to invest with domestic African managers managing Africa-focused private equity funds, although it will consider international firms managing Africa-focused funds that have a local office. It considers first-time funds when investing, as well as the opportunity to co-invest alongside fund managers.
DEG’s private equity investments are focused exclusively on emerging markets, with past investments in Asia, Central and Southern America, and Eastern Europe. It considers a wide variety of fund types including buyout, venture capital and mezzanine. It is also an active investor in private equity cleantech vehicles.
More information on institutional investors in private equity can be found on Preqin’s Investor Intelligence database.