Pamodzi raises $1.3bn fund for South Africa

Investment group Pamodzi Investment Holdings has launched Africa’s biggest private equity fund—which will focus on infrastructure and related investments.

South African investment group Pamodzi Investment Holdings has reportedly launched a $1.3-billion (€1 billion) fund, Pamodzi Resources Fund I. It will be Africa’s largest private equity fund, according to Reuters.

According to the report, the fund has received commitments from a number of US investors including affiliates of American Metals and Coal International, headquartered in Greenwich, Connecticut. The fund will invest in high-return opportunities in the resource and resource-related sectors in South Africa and across Sub-Saharan Africa.

Prior to the Pamodzi fund, Africa’s largest private equity fund was Brait Private Equity’s $880-million Brait Fund IV, which has 6 billion rand ($818 billion, €606 billion) in capital.
South Africa has sparked outside interest recently. Earlier this year, private investment firm Bain Capital acquired Edcon, South Africa’s largest fashion retailer, for 25 billion rand—the country’s biggest private equity deal.

Last year, CDC, the UK government-backed emerging-markets private equity investor, committed $100 million to a new private equity real estate fund focused on Africa. Actis Africa Real Estate Fund targets investments in the office and retail space.

The Pamodzi fund will reportedly announce its first deals in the last quarter of this year and will have a life-span of ten years.

The firm was founded in 1996 by Ndaba Ntsele and Solly Sithole, former founders of Pamodzi Property Developers