CDC Group, the UK government-backed private equity emerging markets fund of funds investor, has made commitments totalling $149.8 million (€95.5 million) to six private equity funds in Africa. The commitments are almost a third of the funds’ cumulative target of $479 million for investment in the region.
These latest commitments bring CDC’s overall spend in Africa to $2.6 billion to date. In 2007 CDC committed $714 million to funds investing in Africa, compared to $564 million in 2006.
CDC has committed $30 million to GroFin Africa Fund, which provides expansion capital of between $100,000 and $1 million to small enterprises in sub-Saharan Africa. It is managed by GroFin, an independent South Africa-based fund manager.
A further $30 million has gone to Travant Private Equity Fund I, a generalist fund investing between $20 million and $40 million in growth companies in West and Central Africa, with a primary focus on Nigeria. The fund is managed by Travant Capital Partners, which is based in Lagos.
The Capital Alliance Property Investment Company, which invests in greenfield developments including residential, commercial and retail properties, primarily in Nigeria, has received $20 million. It is the first real estate fund to be managed by Africa Capital Alliance, an independent private equity firm focused on investment in West Africa.
CDC has invested $31 million to SGAM Al Kantara Fund (SGAM Al), which provides expansion capital and LBO investments of $8 million to $25 million for mid-market companies, primarily in Morocco, Tunisia, Algeria and Egypt. The fund is managed by SGAM Alternative Investments, a subsidiary of France’s Société Générale Asset Management.
The Maghreb Private Equity Fund II, a North African fund investing in SMEs in Morocco, Tunisia and Algeria, with an average investment of $6 million garnered $31 million. The fund is managed by Tuninvest Finance Group, one of the longest standing and experienced private equity firms in the region.
Finally the Central Africa Growth Sicar fund, a private equity fund investing in SMEs in Central Africa by taking minority stakes with an average investment of $2m raised $7.8 million from CDC. The fund is managed by EMP Central Africa Management LP, a subsidiary of EMP Africa.