AfricInvest will increase its bitesize and set its sights on upper mid-cap businesses with its next pan-African flagship, Private Equity International has learned.
The Tunisia-headquartered firm will target around $500 million for AfricInvest Fund IV, according to a source with knowledge of the fund. The firm will seek to write cheques of between $30 million and $50 million into deals across the continent from the larger fund.
AfricInvest will also expand into South Africa with a new Johannesburg office later this year, the source added. Fund IV will consider co-investments in South African businesses seeking expansion into the rest of the continent.
The firm declined to comment.
Fund III, a €273 million 2015-vintage, invests up to €25 million a time, but completes larger deals with co-investors. Its limited partners include African Development Bank, the Swiss Investment Fund for Emerging Markets and London’s CDC Group, according to PEI data.
According to Sarona Frontier Markets Fund II, AfricInvest III had generated a 3.6 percent net IRR and 1.07x total-value-to-paid-in, as of 31 March 2018.
The firm held a final close on Maghreb Private Equity IV at €194 million in December, according to a statement. The fund seeks significant minority stakes in small and medium enterprises across North Africa, including Algeria, Egypt, Morocco and Tunisia.
AfricInvest’s portfolio includes Kenya’s Silafrica Plastics and Packaging International, Ghana’s International Community School and Moroccan investment bank CFG. The firm manages around $1.5 billion of assets across 18 private equity funds and out of nine offices.
– This article was updated to reflect that Fund III was a €273 million 2015-vintage and not a €204 million 2014-vintage.