Carlyle raises $698m for Africa fund

The fund exceeded its target by almost $200m and has made two investments to date.

The Carlyle Group has closed its Sub-Saharan Africa Fund on $698 million, north of its $500 million target.

Carlyle launched the fund in 2013 and had raised about $592 million as of October 2013, according to documents filed with the US Securities and Exchange Commission. The fund received strong support from African investors and also attracted a significant amount of international capital from limited partners around the world, including investors who are investing in Africa for the first time, Carlyle said in a statement.

The African Development Bank is an LP in the fund, according to Private Equity International’s Research and Analytics division.

The vehicle will focus on investment opportunities linked to the growth of the emerging middle class across Sub-Saharan Africa. Key sectors for the fund are expected to include consumer, logistics, financial services and telecommunications.

Carlyle’s Sub-Saharan team, which has offices in Johannesburg and Lagos, has already made two investments from the fund. In January, the firm partnered with Investec Asset Management to invest in J&J Africa, a pan-African logistics company which focuses on road transportation along the Beira corridor of Southwest Africa. Carlyle also invested in Tanzania-based agribusiness company Export Trading Group in November 2012.

“The success of the fundraising reflects investors’ appetite for the strong economic growth that the region has experienced over the last decade, as well as the prospects for future economic development across the continent,” Marlon Chigwende, a managing director and co-head of the Sub-Saharan Africa advisory team, said in the statement.

Carlyle’s Africa team has undergone a significant management change following this fundraise, as Daniel Jordaan, a managing director and co-head of Carlyle’s Africa team, recently transitioned to the role of senior advisor, PEI reported last month. The move did not trigger a key-man clause and managing director and co-head Marlon Chigwende will continue to lead Carlyle’s Sub-Saharan Africa team in Johannesburg. Jordaan was hired in 2011 after working as a partner at Ethos Private Equity.