AfricInvest Closes $400m To Invest In Midcap Companies
AfricInvest, a leading alternative asset platform engaging in private equity, venture capital, private credit, and listed equities, has announced the full close of AfricInvest Fund IV, LLC (the “Fund,” “AfricInvest IV,” or “AF IV”), with total commitments of $411 million. AfricInvest IV, which was launched two years ago with a hard cap of $400 million, garnered investment from new and returning institutional investors, development finance organizations, and family offices from all over the world. The Fund is the largest in AfricInvest’s history, succeeding AfricInvest III, which closed in 2016 with a fund size of €272 million (US$300 million).
AF IV, like its predecessors, seeks to invest in mature and profitable African mid-cap companies across a variety of industries in order to accelerate their regional expansion and generate excellent risk-adjusted returns. The Fund also promotes inclusive and sustainable development by adhering to the 2X Challenge criterion for women’s economic empowerment. The Fund’s investment team provides portfolio companies with a unique combination of local insights and global perspectives, utilizing AfricInvest’s hallmark hands-on approach.
“AfricInvest Fund IV is well positioned to continue financing African companies, supporting them as they develop into local and regional champions. Our local expertise and insight allow us to generate proprietary deals to help create long-term strategies to deliver value for portfolio companies,” Skander Oueslati, Senior Partner and CIO of sub-Saharan Africa, said.
“The support we received from our investors has been terrific. Seeing how many of them have recommitted to this mip-cap fund strategy, especially amidst the Covid pandemic, is a testament to their belief in our ability to deliver attractive risk-adjusted returns. We are grateful for their confidence and look forward to partnering as we build a future with the next generation of African entrepreneurs,” George Odo, Senior Partner and Managing Director, East Africa, added.
AfricInvest IV has made three investments since its inception, the first of which was the acquisition of a minority position in Fidelity Bank Ghana in mid-2020. The second investment, in 2021, was in a merger of Compagnie Marocaine de Goutte à Goutte et de Pompage (“CMGP”) and Comptoir Agricole du Souss (“CAS”), resulting in CMGP-CAS, one of Africa’s biggest irrigation and agricultural firms. In April 2022, the Fund and the International Finance Corporation 2 acquired a 36% ownership in Kenya-based AutoXpress, the largest importer, distributor, and retailer of tyres, auto parts, and accessories in East Africa.
“Mid-cap opportunities in Africa will continue to grow. At AfricInvest, we are ready to invest across the continent, engaging management teams directly to further accelerate their goals of building profitable and sustainable businesses while creating long term impact,” Hakim Khelifa, Senior Partner, commented.
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