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 was launched in 2012 with a hard cap $400 million. It has attracted investment from returning institutional investors, development finance organisations, family offices, and other international investors. 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).

Like its predecessors, AF IV seeks to invest in African mid-cap, profitable companies in a variety industries to increase their regional expansion and to generate excellent risk-adjusted return. 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 was Senior Partner and CIO sub-Saharan Africa.

“The support we received from our investors has been terrific. “Seeing how many of our investors have recommitted, especially during the Covid pandemic is a testimony that they believe in our ability to provide attractive risk-adjusted rewards. 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, Managing Director East Africa, was also added.

Since its inception, AfricInvest IV made three investments. The first was the acquisition in mid-2020 of a minority stake in Fidelity Bank Ghana. 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. The Fund and International Finance Corporation 2 bought 36% of Kenya’s AutoXpress, which is the largest East African importer, distributor, and retailer of tyres, parts, and accessories.

“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 was the Senior Partner.

Get latest news from African Startup ecosystem

Latest stories

You might also like...