Abraaj raises $1 billion to invest in sub-Saharan Africa
Approximately 64 per cent of the $990 million fund comes from European and North American investors.Private-equity firm Abraaj has announced that it raised nearly $1 billion (€940 million) under the new fund 'Abraaj Africa Fund III', dedicated to sub-Saharan Africa.
Approximately 64 per cent of the $990 million fund comes from European and North American investors, Abraaj said in a statement. The firm was initially seeking $800 million.
AAF III will focus on well-managed, mid-market leaders in sectors most likely to benefit from demand driven by the rapid expansion of a young, urban, middle class across Sub-Saharan Africa. These sectors include consumer goods and services, consumer finance, and resource and infrastructure services in the core geographies of Nigeria, Ghana, Côte d’Ivoire, South Africa and Kenya.
Founded in 2002 in the United Arab Emirates, the Abraaj Group is a specialist investor in emerging countries and operates in Asia, Africa, Latin America, Middle East and Turkey.
This comes after Helios Investment Partners, a private equity fund focused on Africa, gathered for the first time more than $1 billion in 2014.
Tope Lawani, Helios co-founder, said in an interview with the Financial Times that the size of the capital rising and the participation of pension funds and sovereign wealth funds was a sign that "private equity in Africa is maturing".