Aureos looks to raise $400m African fund

Emerging markets buyout firm Aureos is looking to raise a pan-African fund as it aims to double its funds under management.

Aureos is planning a $350 to $400 million (€256-292 million) pan-African fund at the start of next year.

Aureos currently has a $50 million South Africa fund, a $40 million East Africa fund, and a $50 million West Africa fund. It will now combine its fundraising efforts into one pan-regional fund.

Aureos partner Brigit van Dijk said:  “We will use our teams on the ground to follow through to the next level. We will focus on our target market of fast growth companies in the small to mid-cap market.”

Aureos joins the increasing space of pan-African fundraising. Emerging Capital Partners closed the largest of such funds on $523 million in May.

The buyout firm also intends to double funds under management to $1.2 billion in the next 12 months and it is currently raising a $300 million Latin American fund, and a $100 million Central Asia fund. Aureos plans to establish its pan-African fund in early 2008.

Seperately Aureos’ Southern Africa Fund has bought a 49 percent stake in South African catering firm Allied Catering Equipment, for an undisclosed sum.

Aureos will use the company as a buy and build platform to supply catering, refrigeration and heavy-duty kitchen equipment. The company caters to institutions including prisons, hospitals and hotels.
The company’s South African fund has made seven investments with a few more in the pipeline, Van Dijk said. It should be fully committed by the end of the year.