3 September 2008, Dutch development bank FMO participated in the first closing of the Aureos Africa Fund (the pan-African successor fund of existing Aureos SME funds covering East Africa, West Africa and Southern Africa). With this closing and the recent closing of Africinvest Fund II (pan-African mid market fund managed by AfricInvest Capital Partners – Tuninvest Finance Group), FMO brings its year-to-date investments in the fast growing African private equity market to a record-high total amount of EUR 118 million. These investments represent approximately one third of FMO’s total private equity investments this year, and more than half of its fund investments.
FMO committed to 9 private equity funds in Africa in 2008, covering a wide range of countries, industries and market segments. “As a keen supporter of private equity development in emerging markets, and as one of the most active DFIs (Development Finance Institutions) in Africa, FMO is proud to be associated with these funds and their respective management teams,” says Yvonne Bakkum, director private equity at FMO.
Besides the above mentioned Africinvest II and Aureos Africa Fund, the funds are: Cauris Croissance, an SME fund mainly for the French African West-Africa countries; Grofin Africa Fund, a growth capital provider active in East Africa; Investec Africa Frontier Fund, a pan-African private equity fund; Pan-African Investment Partners fund managed by Kingdom Zephyr with a focus on larger buy-out and expansion investments; Medu Fund, a South-African SME fund with Black Economic Empowerment credentials; The KIBO Fund, a new private equity fund managed by CIEL Management from Mauritius, which will invest in medium sized companies in Southern and Eastern Africa and Indian Ocean regions, and the Investment Fund for Health in Africa (IFHA), a fund that will invest in private healthcare organizations in target countries Nigeria, Ghana, Kenya, Uganda, Tanzania, Zambia and Namibia.
These funds complement FMO’s existing portfolio in Africa, which totalled EUR 925 million per end of June 2008 and represents 26% of FMO’s total committed portfolio.
“FMO’s Africa portfolio is a well diversified mix of debt, mezzanine and equity investments, predominantly in financial sector (banks, insurance, consumer finance, micro-finance institutions and private equity funds) and infrastructure (mainly energy and mining, with a recent emphasis on low income housing development)”, says Yvonne Bakkum. “With these new investments FMO contributes to the growing African economies and to the private sector development on the African continent. It is expected that through these investments substantial additional employment will be created including opportunities for the new well-educated generation. Further, through FMO’s early involvement in these funds, we hope to catalyze commercial investors to participate as well, thus broadening sources of capital for African funds and entrepreneurs.”
D.C.