Following the final close of the Abraaj Group’s North Africa Fund II at $375 million this week, PEI’s Research & Analytics team has taken a look at closed ended private equity fundraising focused on Africa.
So far in 2015, $3.78 billion has been gathered from seven funds, already outstripping fundraising in any year previously, including 2010 when $3 billion was gathered in total by 22 vehicles. Total capital raised in 2014 was 32 percent lower than in 2015: $2.57 billion was collected from the close of ten funds.
Of the seven funds closed in 2015, the Abraaj fund, which had aimed for $250 million, was one of four vehicles to exceed its target size. Another, Abraaj Africa Fund III, reached a final close at $990 million in March, having targeted $800 million. Helios Investors III is the largest fund to close in 2015 to date. It reached a hard-cap of $1.1 billion, having targeted $900 million.
There are currently 56 Africa-focused funds in market or coming to market with a combined target of $13.32 billion. The largest two vehicles each have a target size of $1 billion. BTG Pactual Africa Fund was launched in 2012 to invest into energy and infrastructure in Sub-Saharan Africa. UK-based DVK Group launched DVK Africa Development Fund in June 2013. The vehicle will invest into Somalia and neighbouring African states across a number of sectors including agribusiness.