PE Africa: Fundraising touches $1.4bn in Q1
Fund managers brought home $1.4billion for Africa in the first quarter of 2013, already matching 2012 year’s full-year figures, according to Preqin data.
This year’s figures have been bolstered by the Ethos Private Equity $800million vehicle, closed at the beginning of the year. Ethos Private Equity Fund VI exceeded its originally cap of $750million.
Fundraising was also lifted by Vital Capital’s vehicle, which reached final close $350million. The Tuninvest – Africinvest Group also finally reached its close at $156million (‚¬120milion) for its third vehicle, according to Preqin data.
However not all mangers have been able to attract significant capital. Silk Invest has reached a final close at $32million, with an expectation to reach a final cap at $40million. The consumer-focused fund had originally hoped to bring in approximately $150million (‚¬100million).
Another newcomer that has closed at a lower level is Netherlands-based XSML, which has closed at $19million. The manger was only $6million short of its original $25million target. The Central Africa SME Fund (CASF) has an 80% allocation to DRC and 20% to the Central African Republic (CAR).
Even so, the first quarter 2013 fundraising figures put the industry on track to touch the $3billion raised in 2011, the highest level reached since the credit crisis. The figure is the second-highest figure raised for Africa, on Preqin’s records. The figure is only surpassed by the $4.9billion raised in 2007, the largest amount raised for the continent in one year.
This year’s figures are set to be lifted by expected interim and final closes from key funds in the market. Among some of the brand names on the fundraising trail are Carlyle Group, with its $500million Carlyle Sub-Saharan Africa Fund and 8 Miles, which is raising its maiden $450million vehicle. Satya is also on the trail with a sophomore fund, which has been cut from $500million to $300million.