Aureos final close takes Africa fund past target

Emerging markets private equity firm Aureos Capital has held a final close for its Africa Health Fund ahead of target, and also bolstered its Asia team with the addition of a new partner.

Aureos has held a final close for its Africa Health Fund, which boasts cornerstone investors such as the International Finance Corporation, the African Development Bank, DEG, and the Bill & Melinda Gates Foundation, according to a statement from the firm. The firm said that in raising $105.4 million it had exceeded its $100 million target.

Aureos, which has $1.3 billion in funds under management, could not be immediately reached for comment.

The Africa Health Fund has a mandate to increase the accessibility of quality healthcare services to low-income African citizens by investing in small- to medium-sized businesses on the continent.

Jacob Kholi, managing partner of Aureos West Africa Managers and manager of the Africa Health Fund, said in a statement that the fund had made three investments so far. Its first was an investment in Nairobi Women's Hospital, which provides high quality medical services to women and children including high levels of child-birth and maternity care.

He added: “We are also keen to invest all along the supply chain. If we can deliver economies of scale in, for example, the manufacturing of medical devices or in distribution, that should bring benefits to all healthcare providers in the region, whether they are in the public, private or voluntary sectors.”

In addition to the fundraising close, Aureos has also expanded its Asia team, appointing Ashish Patel as partner for Asia, the company said in a statement.

Patel has 15 years of experience working with growth companies and leading investments in 40 young businesses in both emerging and developed markets.

He spent a decade at Intel Capital, the private equity arm of semiconductor company Intel, where he was managing director for Europe, Middle East and Africa. He joined Aureos from AVG Technologies, the global security software company, where he was head of strategy, emerging markets and corporate development since 2010.

He has also held a number of non-executive directorships and advisory roles, including board positions at AVG Technologies, IP Access and RuNet (Yandex).

“We are delighted to welcome Ashish to the company,” said Aureos' chief executive Sev Vettivetpillai in the statement. “He brings with him the unique perspective of having worked both as a private equity investor, as a director of small-and-medium sized companies and working within a large corporation of the type that targets our investee companies as trade buyers.”

Patel added: “I am particularly attracted by Aureos’ hands-on approach of working closely with its investee companies to ensure they maximise opportunities for profitable growth. This is achieved through a hugely impressive network of local offices which gives them an unrivalled understanding of the local markets that they operate in. I am looking forward to becoming part of that network.”

Prior to joining Intel, Ashish was an investment director at CDC Group, the emerging markets private equity investor.

With additional reporting by Clare Burrows.