AfricInvest, a leading investment platform active in private equity, venture capital, private credit, and listed equities, has announced the final close of its AfricInvest Fund IV, which raised $411 million in total commitments.
AfricInvest has raised more than $2 billion to fund nearly 200 firms in various phases of development across three continents over the last 25 years.
AfricInvest IV received investment from new and returning institutional investors, development finance institutions, and family offices from all across the world when it was launched two years ago with a hard cap of $400 million. The fund is the largest in AfricInvest’s history, and it succeeds the previous flagship fund, AfricInvest III, which closed in 2016 with a US$300 million fund size.
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.