Africa is attracting more big name PE investors, joining groups like 8Mile and Helios. It was announced this week that fundraising is underway by Carlyle for a USD500 million, sub-Saharan fund, according to MarketWatch. In a related article in Financial News it was reported that Carlyle expects a first close within the next few months.
The interest in Africa will likely increase, as Carlyle tends to be a trendsetter or “pioneer”. Other PE houses tend to follow in its wake. For example, it was one of the first big names to enter the Chinese market. TPG was also an early market entrant there. Both were followed by other internationally active buyout houses. Africa is definitely on the PE map nowadays.
Last year, we reported in a May issue of Dealmarket Digest about Bob Geldof’s 8Mile fund (named after the shortest distance between the African Continent and Europe), which had raised about USD 200 million for the region. Helios also closed a fund at close to one billion dollars, it reported last June. (Image Source: Google Maps)