Private equity firm Vital plans $500 Million Africa Fund

Jun 29, 2015

Some 20 investments are considered in industries such as agriculture, water and education.

Private equity firm Vital Capital Investments LP is looking to raise a $500 million (€447 million) to create an investment fund that will focus on African industries.

The Vital Capital Fund II is planning to invest in Mozambique, Tanzania, Rwanda, Angola, Ethiopia, Uganda, Cameroon, Ghana and the Ivory Coast, managing partner Eytan Stibbe said in an interview with Bloomberg.

Some 20 investments are considered in industries such as agriculture, water, education, affordable housing, healthcare and clean-energy.

"People consider those areas that we’re active in as higher risk and there are less entities involved," he said. "It’s more difficult to attract foreign, western sources of money to these sectors to do affordable housing in rural, even urban Africa. We found that as a big need, so we decided to create Vital as a platform for Western money to be invested in Africa."

Vital Capital Fund II has a cap of $700 million, with a first close expected by the end of this year.

The fund comes a few months after Helios Investment Partners, a private equity fund focused on Africa, for the first time raised more than $1 billion in January. The London-based group said the record size of the fund signals the growing appetite for the continent.
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