Aureos nears $400m fund close

The emerging markets specialist has attracted $253m in commitments and expects to garner a further $100m in the next two months. The final close is scheduled for the third quarter.

Emerging markets private equity firm Aureos is confident it will reach the $400 million target for its first pan African fund in the third quarter of 2009.

“We expect to have a second closing within the coming two months for another $100 million, and hopefully we will have a final closing on $400 million in the third quarter of this year,” said Aureos partner Brigit van Dijk – Van de Reijt in an interview.

Brigit van Dijk – Van de Rijt

The firm, which is already investing three smaller regional Africa-focused funds, has garnered more than $253 million for the Aureos Africa Fund so far from insitutions, family offices, high net worth individuals and international financial institutions, or IFIs.

Aureos began marketing the fund to investors in February last year. It will make investments of between $2 million and $10 million, predominantly in companies with the potential to build pan-African businesses.

Aureos had three full exits and five partial exits in 2008 from the predecessors to the Aureos Africa Fund – The Aureos East Africa Fund, Aureos West Africa Fund and the Aureos Southern Africa Fund – which between them have commitments of $140 million.

The exits and yield from the investments in the three funds realised almost $77 million in cash. On current expectations, Aureos is on course to achieve a cash multiple in excess of 3.5x on these Funds, the firm said in a statement in January.

Aureos was established in July 2001 as a joint venture between UK government-owned fund of funds CDC Group and Norfund, the Norwegian Investment Fund for Developing Countries.