AfricInvest, a prominent investment platform engaging in private equity, venture capital, private credit, and listed stocks, has announced the final closure of its AfricInvest Fund IV, which raised $411 million in total commitments.
AfricInvest has raised more than $2 billion in the previous 25 years to fund almost 200 firms in various phases of development across three continents.
AfricInvest IV garnered investment from new and returning institutional investors, development finance institutions, and family offices from all over the world when it was launched two years ago with a hard cap of US$400 million. The fund is the largest in AfricInvest’s history, and it succeeds AfricInvest III, which closed in 2016 with a fund size of US $300 million.
AfricInvest IV, like its predecessors, aspires to invest in mature and successful African mid-cap firms in a variety of industries in order to stimulate regional growth and provide attractive risk-adjusted returns. The fund also promotes inclusive and long-term growth by adhering to the 2X Challenge criterion for 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.
AfricInvest IV has made three investments since its creation, the first of which was the purchase of a minority position in Fidelity Bank Ghana in mid-2020. The second was a 2021 investment in a merger between Compagnie Marocaine de Goutte à Goutte et de Pompage and Comptoir Agricole du Souss (“CAS”), resulting in CMGP-CAS, one of Africa’s biggest 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.
“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.
