Kingdom Zephyr starts deploying second pan-African fund

The Africa-focused private equity firm has made two investments from Pan African Investment Partners II, including a co-investment with Emerging Capital Partners in tinned tuna-producer Thunnus Overseas Group.

Kingdom Zephyr Africa Management, a joint venture between the US-based private equity firm Zephyr Management and Prince Alwaleed bin Talal bin Abdulaziz Alsaud of Saudi Arabia’s investment company Kingdom Holding, has sealed two deals from its second pan-African fund.

Tuna: in the PAIP II portfolio

Kingdom Zephyr has acquired a 21.2 percent stake in Mixta Africa, a Spanish affordable housing developer operating predominantly in the African low to middle income residential real estate sector. The €45 million investment – the firm’s largest to date – was principally made from Pan African Investment Partners II (PAIP II) fund, which held a first close in $325 million in July last year.

Kingdom Zephyr has also invested €14.3 million for an undisclosed stake in Thunnus Overseas Group, a producer and distributer of canned tuna with operations in Cote d’Ivoire, Madagascar and France.

Emerging Capital Partners, a New York-based Africa-focused specialist, co-invested in the Thunnus Overseas Group deal.

Kingdom Zephyr is still fundraising for PAIP II, which is targeting up to $500 million for growth investments across Africa. The fund’s predecessor was launched in 2003 with $122.5 million in capital.