Abraaj closes second North Africa fund at $375m

The UAE-based firm has raised $1.37bn this year to invest in Africa.

The Abraaj Group has reached final close on its second North Africa-focused fund at $375 million, the UAE-based firm said in a statement.

Its target size for the Abraaj North Africa Fund II was $250 million, according to PEI’s Research & Analytics division.

The fund will target growing mid-market businesses in Algeria, Egypt, Morocco and Tunisia that have the potential to become regional leaders in sectors driven by a rising middle class, the statement said. These include healthcare, education, consumer goods and services, business services, materials and logistics.

ANAF II will target majority and significant minority stakes, like its first North Africa fund, a €115 million, 2008-vintage vehicle. That fund has invested in companies including Moroccan chocolate manufacturer Kool Food, Tunisia’s Plastic Electromechanic Company, and Algerian logistics firm La Fleche Bleu Algerienne, a spokesperson said.

ANAF II drew commitments from new and existing investors, including global institutions, pension funds, sovereign wealth funds and development finance institutions, the statement said. Almost two thirds of its limited partners were from the US and Europe.

To date, the fund has made seven investments, including in North Africa Hospital Holdings Group, which it acquired this year and through which it has invested in Egypt’s Cairo Medical Centre and Cleopatra Hospital, and Tunisia’s Clinique La Soukra. The fund has also invested in Futures education group in Egypt, industrials group ASSAD in Tunisia, and Centre de Traitement Al Kindy, a Moroccan oncology clinic.

Abraaj has been investing in North Africa since 2006, where it has made 23 investments and exited 11, either fully or partially, the statement said. It has a team of 14 investment and operational professionals across its four regional offices in Algeria, Egypt, Morocco and Tunisia, the statement said.

The firm has no plans to replace Amr Helal who was a managing director at the firm based in Egypt, according to a spokesperson. Helal left Abraaj to head the Duet-CI Capital Egypt Opportunities Fund, a $300 million joint venture between London-based Duet and Egyptian investment bank CI Capital, as reported by Private Equity International.

Duet is also raising a Sub-Saharan fund targeting €300 million, and expects to hold a first close by the end of the year, PEI previously reported.

Abraaj is also investing in Sub-Saharan Africa and closed its third regional fund at $990 million in April. The total capital raised by the firm this year dedicated to Africa stands at $1.37 billion.