Investec raises $226 million for a fund dedicated to credit and debt markets
The fund offers companies an alternative to traditional bank financing.Investec Asset Management, a South African asset management company, has announced a final close for the Investec Africa Credit Opportunities Fund 1 at $226 million (€201 million).
Launched in 2013 with $60 million, Africa Credit Opportunities Fund 1 is dedicated to pan-African operations. The funds raised come mainly come from US and European investors, whose names have not been disclosed.
According to director of global business development John Green, the fund is the first dedicated African credit and debt markets fund, and aims to provide growth capital to African companies, while offering an alternative to traditional bank financing. He said it will help "catalyse" the development of the continent’s debt capital markets, generate high running yield and capital gains for its investors and invest in sustainable businesses.
This comes after Investec announced it acquired - through its Africa-focused private equity fund - a minority stake in technology services firm wiGroup with a view to increase the firm's software sales to mobile money issuers in Africa.
The Investec Africa Private Equity Fund II has also invested in telecoms towers business IHS Africa in Nigeria and IDM, a debt management company in South Africa, and has entered a partnership with Nigerian electronic payment processing firm Interswitch.