AfricInvest closes African midcap-focused fund at over $400m

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AfricInvest, a leading investment platform active in multiple alternative asset classes including private equity, venture capital, private credit and listed equities, has announced the final close of its AfricInvest Fund IV with total commitments of US$411 million. 

Over the last 25 years, AfricInvest has raised more than US$2 billion to finance almost 200 companies at various development stages across three continents.

Launched two years ago with a hard cap of US$400 million, AfricInvest IV received investment from new and returning institutional investors, development finance institutions and family offices from around the world. The fund is the largest in AfricInvest’s history and follows on from the previous flagship fund, AfricInvest III, which closed in 2016, reaching a fund size US$300 million.

Like its predecessors, AfricInvest IV aims to invest in mature and profitable African mid-cap companies across diverse sectors to accelerate their regional growth and deliver attractive risk-adjusted returns. The fund also supports inclusive and sustainable development, having committed to the 2X Challenge criteria in support of women’s economic empowerment. 

“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,” said Skander Oueslati, senior partner and CIO of Sub-Saharan Africa at AfricInvest.

Since its inception, AfricInvest IV has made three investments, the first being the acquisition of a  minority stake in Fidelity Bank Ghana in mid-2020. The second, in 2021, was an investment in a merger of Compagnie Marocaine de Goutte à Goutte et de Pompage’s with Comptoir Agricole du  Souss (“CAS”), creating CMGP-CAS, one of Africa’s leading irrigation and agribusiness companies. The most recent investment, in April 2022, saw the Fund, alongside the International Finance Corporation, acquire a 36% stake 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,” said Hakim Khelifa, the firm’s senior partner.

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