CDC invests in Nigerian property fund

The UK government-backed emerging markets fund of funds has invested in Africa Capital Alliance, one of six private equity funds to receive $150m from the firm.

CDC Group, the UK government-backed private equity emerging markets fund of funds investor, has invested $149.8 million (€95.42 million, £75.5 million) in six private equity real estate funds in Africa.

One of those funds is the Capital Alliance Property Investment Company, the first real estate fund to be managed by Africa Capital Alliance, a recently launched independent private equity firm focused on investment in West Africa. The fund, which invests in greenfield developments including residential, commercial and retail properties, primarily in Nigeria, has received $20 million from CDC.

The firm is now one third of the way toward its fundraising target of $479 million for the region. The latest commitments bring CDC’s overall spend in Africa to $2.6 billion to date. CDC has been steadily increasing its commitments to Africa. In 2007 CDC committed $714 million to funds investing in Africa, compared to $564 million in 2006.

The other five funds are mostly smaller funds investing in SMEs or providing expansion capital. They include GroFin Africa Fund Travant Private Equity Fund I, SGAM Al Kantara Fund, Maghreb Private Equity Fund II and the Central Africa Growth Sicar fund.