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Funds in Market Investing in Africa – August 2012

by Louise Maddy

  • 06 Aug 2012
  • PE

Preqin’s Funds in Market database currently holds information on 97 private equity funds in market with a preference for investing in Africa. Collectively, these funds are targeting $29bn to invest in private equity opportunities in the region, either exclusively or as part of a more general geographic focus. Of these funds, 40 have had at least one interim close, collecting just over $4bn in aggregate capital commitments to date.

Venture capital funds are the most abundant fund type currently in market with a preference for investing in Africa, with 20 vehicles targeting just over $1.5bn and representing 5% of the total capital being sought. The second most popular fund type is growth, with 19 vehicles currently on the road aiming to collect $7bn in capital commitments and representing 24% of total capital being sought. Infrastructure funds are the third most plentiful fund type focused on the African continent, with 18 funds currently in market targeting $7.8bn in aggregate capital and representing 27% of total capital sought.

The top three funds on the road focused on Africa, either exclusively or part of their wider geographic focus, are Actis 4, Crown Global Secondaries III and InfraMed Infrastructure.

The largest of these three is Actis 4, a growth fund targeting $3.5bn in aggregate capital commitments. The fund began fundraising in May 2011 and invests between $50mn to $300mn in mid-market companies based in the emerging markets of India, China, South East Asia, Africa and Latin America. The fund invests across multiple industries but tends to concentrate investments within the business services, consumer, healthcare, and industrial sectors.

Crown Global Secondaries III is a secondaries fund and purchases secondary interests in funds on a global scale. The fund is targeting $1.5bn in capital commitments and considers investments in the continent of Africa as part of its wider geographic focus.

InfraMed Infrastructure is an infrastructure fund dedicated to the development of energy, transportation and urban infrastructure projects throughout the Southern and Eastern Mediterranean region, as well as the MENA region. The fund has already had one interim close of €385mn in 2010 and has an overall target of €1bn. The vehicle will concentrate a minimum of 67% its capital on Greenfield projects, and up to 33% on Brownfield projects.

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