Venture Partners Botswana to raise €150m fund

African buyout firm Venture Partners Botswana has fully invested its first fund and it is looking to raise €150m for its second. The fund recently bought a stake in US insurer AON’s Botswana arm.

Venture Partners Botswana has fully invested its first fund after committing BWP200 million ($40 million, €26 million) to deals in Botswana, and is now targeting €150 million for its second fund, which will have a wider focus across Southern Africa.

The second fund is likely to have its first close in September 2008, according to a company spokesperson. 

Anthony Siwawa, managing director of Venture Partners Botswana, said the rapid investment of the fund confirms the existence of exciting and sustainable opportunities for investors in the region.

The fund recently bought a 25 percent stake in insurance company AON Botswana, facilitating a management buy-in at the company which has a 60 percent share of the insurance broking market in Botswana. It remains a subsidiary of Fortune 500-listed AON Corporation, which has retained a 70 percent stake. However Venture Partners Botswana and management, who own 5 percent, control the day-to-day activities of the company.

The investment was an attempt to diversify the fund, 55 percent of which is invested in start-ups, the spokesperson said.

Private equity across Africa is a growing force. Emerging Capital Partners recently raised a $523 million pan-African fund, while South African buyout firm Pamodzi raised the first ever billion dollar fund on the continent this month.