Funds in Market Investing in Africa

by Cindy Smith

  • 30 Jan 2012
  • PE

Preqin’s Funds in Market product currently holds information on 91 private equity funds in market with a preference for investing in Africa. Collectively, these funds are targeting an aggregate $31.2bn to invest in private equity opportunities in the region, either exclusively or as part of a more general geographical focus. Of these funds, 47 have had at least one interim close, collecting just over $6.5bn to date in capital commitments.

Venture capital funds are the most abundant fund type currently in market, with 23 vehicles targeting just under $3bn, 10% of total capital being sought. The second most abundant fund type is growth with 14 vehicles currently on the road, aiming to collect $7.2bn in capital commitments, 23% of total capital being sought. Infrastructure funds are the third most abundant fund type focused on the region, with 11 funds currently in market, targeting $4.8bn in aggregate capital, 15% of total capital sought.

The top three funds on the road focused on Africa, either exclusively or part of their wider geographical focus, are Actis 4, Abraaj Buyout Fund IV and Corsair IV Financial Services Capital Partners.

The largest fund currently on the road 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 will invest across industries but tends to concentrate investments within the business services, consumer, healthcare and industrial sectors. Abraaj Buyout Fund IV is a buyout fund concentrating investment within the Middle East, North Africa and South Asia regions. The fund is targeting $2bn in capital commitments and has had an interim close at $1.2bn. Corsair IV Financial Services Capital Partners is a private equity fund focused on turnaround investments within the financial services sector. The fund is targeting $2bn and will concentrate investment within South America, Europe, Asia and North Africa.

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