Aureos launches $400m Africa fund

The firm has set off on the fundraising trail having doubled the amount of money it plans to invest in Africa.

Emerging market private equity firm Aureos Capital has launched a $400 million (€272.9 million) African fundraising effort, according to a statement.

Sev Vettivetpillai:
doubling Africa

Aureos’ fundraising plans for Africa were first reported by PEO in August last year.

Aureos currently has a $50 million South Africa fund, a $40 million East Africa fund and a $50 million West Africa fund. Now the firm is replacing its multi-regional approach for the continent in favour of one unified fund similarly to its regional competitors Actis and Emerging Capital Partners (ECP).

The firm invests between $2 million and $10 million per investment across the region.

Aureos chief executive Sev Vettivetpillai said in a statement Africa’s recent GDP growth of between 5.3 to 5.6 percent combined with its population being the second largest worldwide had made investors aware of the continent’s potential.

The largest pan-African private equity to date is managed by ECP, which closed a $523 million vehicle in May last year and has since invested approximately 90 percent of that fund, according to chief executive Tom Gibian.

Actis is presently fundraising for the region as well. In addition, the London-based firm has also received a near $1 billion commitment to its latest emerging markets infrastructure fund, which is focussed on Africa, Asia and Brazil.