AfricInvest Announces Final Close of African Midcap-Focused Fund at Over $400m

AfricInvest, a prominent investment platform engaging 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 garnered investment from new and returning institutional investors, development finance institutions, and family offices from throughout 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 follows AfricInvest III, the previous flagship fund, 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 companies in a variety of sectors in order to accelerate 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 businesses and assisting them in becoming local and regional champions.” Skander Oueslati, senior partner and CIO of AfricInvest for Sub-Saharan Africa, said, “Our local skills and insight allow us to generate proprietary deals to assist create long-term plans to drive value for portfolio firms.”

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.

“African mid-cap opportunities will continue to expand. “At AfricInvest, we are ready to invest across the continent, working directly with management teams to help them achieve their long-term goals of establishing lucrative and sustainable businesses,” said Hakim Khelifa, the firm’s senior partner.