AfricInvest, an African investment platform, announced the final close of AfricInvest Fund IV. Total commitments were US$411 millions.
Fund AfricInvest IV is the largest in the company’s history, and it follows on from the previous flagship fund, AfricInvest III, which closed in 2016 with a US$300 million fund size.
AF IV seeks to invest in profitable, mature African mid-cap businesses in a range of sectors to stimulate regional growth. It also generates excellent risk-adjusted returns.
“AfricInvest Fund IV is ideally positioned to continue financing African companies, helping them as they evolve into local and regional champions,” said Skander Oueslati, Senior Partner and CIO of Sub-Saharan Africa. Our local knowledge and experience enable us to establish distinctive deals that help portfolio companies develop long-term strategies that provide value.”
Since its inception, AfricInvest IV made three investments. The first was the acquisition of a minority stake in Fidelity Bank Ghana mid-2020.
The second was an investment in a merger between Compagnie Marocaine de Goutte à Goutte et de Pompage (“CMGP”) and Comptoir Agricole du Souss (“CAS”) in 2021, resulting in CMGP-CAS, one of Africa’s top irrigation and agribusiness firms.
In April 2022, the Fund and the International Finance Corporation purchased a 36 percent ownership in Kenya-based AutoXpress, which is East Africa’s largest importer, distributor, and retailer of tyres, auto parts, and accessories.
In addition, the Fund encourages inclusive and sustainable development by adhering to the 2X Challenge criterion for women’s economic empowerment.
AfricInvest IV received investment from returning institutional investors, financial institutions for development and family offices around the globe when it launched two years ago. It had a hard cap limit of $400 million.