Currently there are 57 exclusively Africa-focused private equity Funds in Market, collectively seeking to raise $13.1bn in capital commitments, according to Preqin’s Funds in Market database. Of these funds, 23 have already made at least one interim close, collecting an aggregate of $1.6bn so far. Breaking these funds down into fund type, infrastructure and buyout funds account for the highest proportion of total capital sought for Africa-based Funds in Market. These 18 infrastructure and buyout funds target an aggregate $6.8bn in capital, making up just over 52% of the total capital sought to invest within the region.
Of the 57 exclusively Africa-focused Funds in Market, the majority of fund managers are located in South Africa, with 15 funds targeting $4.2bn in capital and accounting for 32% of the total capital sought. The UK is the second most prominent region for fund managers targeting Africa investments, with 9 funds seeking to collect $2.5bn, while 5 US-based fund managers aim to raise $1.3bn to invest in the region.
The average size of the 57 solely Africa-focused Funds in Market is $229mn, with the largest of the funds, Pan African Infrastructure Development Fund II, aiming to raise $1.2bn in capital commitments. This infrastructure fund is managed by Harith, headquartered in South Africa, and targets infrastructure projects within the energy, environment services, renewable energy, telecommunication and transportation industries. The fund invests directly in all regions of the continent and in securities of companies that own, control, operate or manage infrastructure and infrastructure-related assets.
The second largest fund in market, BTG Pactual Africa Fund, seeks to raise $1bn to invest in infrastructure assets within the energy and utilities sector. BTG Pactual Africa Fund is the first fund managed by BTG Pactual, the Brazilian investment bank. The growth fund, African Development Partners II, is the third largest exclusively Africa-focused fund in market and targets $500mn in capital commitments. The fund generally focuses on companies which serve Africa’s emerging middle class, such as financial institutions, pharmaceuticals and hospitals, telecommunications, food service and agribusinesses, consumer goods, education, engineering and construction.