Almost all of the capital raised in 2013 for African focused funds has been collected within the first five months of 2014.
In 2013, $2.04 billion was secured, with 58 percent coming from the first quarter of that year. Ethos Private Equity Fund VI was the largest fund to close in 2013, which held a final close on $800 million – $50 million more than its target. Massachusetts Pension Reserves Investment Management Board (MassPRIM) and Old Mutual Investment Group (OMIGSA) are some of the LPs that have committed to the fund.
So far for 2014, $1.99 billion has been raised from six African focused funds. However, much of this fundraising has been accounted for by government related investments, rather than interest from the global LP community. The Equatorial Guinea Co-Investment Fund, set up by the Equatorial Guinean government, closed at $1 billion. The co-investment vehicle, which contains capital solely from the government, will aim at enhancing the growth of certain areas within the economy.
Last month, the Mkoba Private Equity fund was launched by the United Republic of Tanzania Ministry of Finance seeking $300 million. The venture capital fund is set up much like the Equatorial Guinean one, however it is targeting investments from foreign investors. The fund, along with 57 other Africa focused funds in market, are targeting a combined $15.88 billion from investors.