African Energy Infrastructure Fund gets $30m commitment

The proposed private equity fund will be managed by Prescient Fieldstone Investment Management and target final commitments of $500m. A first close is scheduled on $150m.

The African Energy Infrastructure Fund (AEIF), a pan-African energy private equity fund focused on power and energy projects across the continent, has received a $30 million equity commitment from the African Development Bank.

The commitment represents one-fifth of the $150 million first close that the fund is targeting. AEIF’s ultimate target is $500 million.

Based in Mauritius, the fund will be managed by Prescient Fieldstone Investment Management, a joint venture between investment manager Prescient and financial advisory firm Fieldstone Africa.

The fund’s activities are expected to enable an additional $5 billion of new financing that will result in over 5,000 megawatts of new power production capacity on the continent by 2015, the African Development Bank said in a statement.

The fund is also billed as the first pan-African private equity fund to focus on investing in power and energy assets. Other emerging markets firms have been busy raising pan-Africa funds as well. UK-based Aureos Capital recently held a first close on its Aureos Africa Fund at $253.5 million. It is targeting $400 million for the fund, which will be eight times larger than its existing Africa-focused funds.
And in September, South Africa-based growth finance company GroFin has held a $125 million (€86 million) first close on its first pan-Africa fund.

The African Development Bank is a multilateral development bank whose shareholders include 53 African countries and 24 non-African countries from the Americas, Asia and Europe, according to its website. A frequent LP in Africa-focused private equity funds, it has approved a total of 15 private equity investments totalling $380 million.

The African Energy Infrastructure Fund was unavailable for comment at press time.