CDC commits $150m to new private equity funds in Africa

CDC's commitments are: $30m to GroFin Africa Fund, $30m to Travant Private Equity Fund I, $20m to Capital Alliance Property Investment Company, $31m to SGAM Al Kantara Fund, $31m to Maghreb Private Equity Fund II and $7.8m to Central Africa Growth Sicar.

GroFin Africa Fund provides expansion capital of between $100,000 and $1m to small enterprises in sub-Saharan Africa, including South Africa, Kenya, Uganda, Tanzania, Rwanda and Nigeria. It is managed by independent South Africa-based fund manager GroFin.

Travant Private Equity Fund I is a generalist fund investing between $20m and $40m in growth companies in West and Central Africa, with a primary focus on Nigeria. The fund is managed by Lagos-based Travant Capital Partners.

CAPIC invests in greenfield developments including residential, commercial and retail properties, primarily in Nigeria. It is the first real estate fund to be managed by
Africa Capital Alliance, an independent private equity firm focused on investment
in West Africa.

SGAM Al provides expansion capital and LBO investments of $8-25m for mid-market companies, primarily in Morocco, Tunisia, Algeria and Egypt. The fund is managed by SGAM Alternative Investments, a wholly-owned subsidiary of Société Générale Asset Management.

MPEF II is a North African fund investing in SMEs in Morocco, Tunisia and Algeria, with an average investment of $6m. The fund is managed by Tuninvest Finance Group.

CAGS invests in SMEs in Central Africa by taking minority stakes with an average
investment size of $2m. It is managed by EMP Central Africa Management, a wholly-owned subsidiary of EMP Africa.

Rod Evison, portfolio director, Africa, said, 'These commitments include a number of "firsts": the first pan-Africa fund investing in small enterprises, the three first time teams covering real estate in West Africa, private equity in West and Central Africa, and private equity in the Maghreb. They will supplement previous commitments we have made to successful pioneering funds in Africa. The Grofin commitment in particular is a pioneer in improving access to finance for small companies needing up to $1m of risk capital.'

These latest commitments bring CDC's overall commitment in Africa to $2.6bn.

CDC is a government-owned fund of funds with net assets of £2.7bn. It uses its own balance sheet to invest in private equity funds focused on the emerging markets of Asia, Africa and Latin America, with particular emphasis on South Asia and sub-Saharan Africa.

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