Abraaj Group has raised about US$1.3 billion for two funds investing in Africa to tap into the continent’s economic growth, a person familiar with the deal said.
One fund focusing on Sub-Saharan Africa will be about $1bn, while the second North African fund will be more than $300 million, the source said.
“They have exceed their targets for the funds,” the source said.
Abraaj declined to comment.
The IMF is projecting regional GDP growth in Sub-Saharan Africa to rise to 5.75 per cent this year from 5 per cent last year thanks to infrastructure investment, expanding services, and robust agricultural production.
Abraaj, with assets of about $7.5bn, has been boosting its reach with investments in Sub-Saharan Africa and North Africa, particularly in Egypt.
The Dubai-based buyout firm has invested more than $2.6bn in Africa over the past two decades through 80 investments in the continent.
Deal activity on the continent nearly doubled last year to $8.1bn – the second highest on record – compared with $4.3bn in 2013, according to the London-based African Private Equity and Venture Capital Association. Since 2007, 983 transactions have been completed with a total value of $34.5bn.
Private equity activity is centred around fast-moving consumer goods sectors, infrastructure, real estate and energy, with Sub-Saharan Africa, excluding South Africa, being the focus of investors, according to the association. About $4.1bn was raised last year in African funds, boosting the total of fundraising since 2007 to $22bn. Source: AFK Insider