A South Africa-based private equity firm has set up an Africa-focused infrastructure fund with the aim of raising $1.5 billion.
Antswisa Private Equity is looking to invest in South Africa and across the wider African infrastructure market in unlisted infrastructure companies. Targeted investment sectors include energy, broadband, toll roads, ports and water, as well as the “space and telecommunications” area. Investments will have a gearing of between 50 percent and 75 percent, according to the firm.
The firm is eyeing a wide range of commitments from pension funds, banks and DFIs, government funds, unions and high-net-worth individuals. It stated a minimum investment requirement of 50 million rand ($3.9 million; €3.2 million) and has a targeted yield of 10 percent, with a ‘2 and 20’ fee model attached. Antswisa said such attractive returns “are a symbol of the emergence of private equity in Africa”.
The fund will be supplemented by a smaller healthcare vehicle which is hoping to raise 3.5 billion rand and will seek investments in healthcare infrastructure, building and facilities, equipment, technology and research. The vehicle is said to be analysing an initial pipeline of 10 projects.
Antswisa’s fund launch comes a few weeks after a new African infrastructure fund was launched by Denmark-based AP Moller Capital, targeting “high teens” returns from commitments of $1 billion. The vehicle has been seeded with $550 million from a group of Danish pension funds.
Nigeria’s first infrastructure debt fund was also launched in July, while earlier this year Old Mutual’s African Infrastructure Investment Managers launched the third instalment of its pan-African vehicle.