Investors from a variety of geographic regions, covering Africa, Europe and the US, have shown their support for the private equity asset class in Africa by committing to the recently closed ECP Africa Fund III. Through this vehicle, limited partners including pension funds, government agencies and banks, will provide financing to pan-African businesses at the expansion stage.
Investors based in Africa that have backed the fund include African Development Bank and the Mauritius-based fund of funds manager, South Suez Capital. African Development Bank, which provides financing to improve the economic development and social progress of its member countries in Africa has total assets of USD 26.9 billion and is seeking to invest in up to 20 new private equity funds in the 12 months from June 2010. South Suez Capital has supported the fund with capital from its maiden vehicle, South Suez Capital I, a USD 250 million fund of funds seeking investment opportunities in a range of underlying vehicles, with a particular focus on Africa, with the exception of South Africa.
Outside Africa itself, European and US investors have also shown their support for opportunities in the continent by committing to the vehicle. US-based investors in the fund include two government agencies, namely International Finance Corporation (IFC) and Overseas Private Investment Corporation (OPIC), both of whom are mandated to aid the financing of business in developing countries. IFC will look to invest in between 20 and 25 new private equity vehicles in the 12 months from May 2010, while OPIC will look to invest in up to 15 new vehicles in the 12 months from June 2010.
Within Europe, UK-based CDC Group and Danish pension fund AP Pension both also committed to the vehicle. CDC Group is a government agency that invests in private equity funds focused on emerging markets within Asia, Africa and Latin America. It has USD 4.6 billion currently invested in private equity and was hoping to commit to between 10 and 15 new private equity vehicles in the 12 months from May 2010.
More information on private equity investors can be obtained through Preqin’s online database Investor Intelligence