Investors Support Africa Focused Private Equity Fund

by Joe Childs

  • 16 Feb 2010
  • PE

A number of development institutions have made commitments to the recently closed Aureos Africa Fund. Government agencies, such as the Netherlands’ Development Finance Institution (FMO), Norway’s Norfund and CDC Group of the UK, are among investors in the $381million private equity fund, which will focus on small to mid-sized businesses across the African continent. The fund’s manager, Aureos Capital, was set up by Norfund and CDC Group in 2001 and has secured commitments of $40 million and $75 million for its latest vehicle from the Oslo- and London-based investors respectively. FMO, which has committed capital to a number of Africa focused private equity funds in recent years, also agreed to invest $40 million in Aureos Africa Fund.

Other prominent private equity investors in emerging markets funds have committed to the recently closed fund. European Investment Fund, the private equity investment arm of the European Investment Bank, and International Finance Corporation (IFC) each made commitments of $40 million to Aureos Africa Fund. Preqin’s Investor Intelligence database shows that 270 active private equity investors have either previously invested in vehicles targeting opportunities in Africa, or would consider such funds in the future. Approximately 85% of these investors have gained exposure to the region in the past. Public pension funds and fund of funds managers demonstrate the most interest in Africa, representing 14% and 13%, respectively, of the active investors indicating some interest in the region. Endowment plans (11%), family offices and foundations (10%), investment companies (8%), banks and asset managers (both 7%) are also well represented amongst those with an appetite for Africa focused private equity opportunities.

For more information on insitutional investors in private equity, please see Preqin's Investor Intelligence online database.

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