African Capital Alliance Raises $200 Million

African Capital Alliance has held a $200 million first close on its third private equity fund, which invests in Nigeria and the West African sub-region. It is targeting $350 million. Limited partners include CDC Group, the European Investment Bank, the International Finance Corp., Netherlands Development Finance Corp., First Trustees Nigeria, AIICO Insurance and Africa Re-insurance Corp.

African Capital Alliance (ACA) announces the first closing of USD 200 million for Capital Alliance Private Equity III (“CAPE III”), a private equity fund which seeks to tap high potential opportunities in sectors such as financial services, oil and gas, power (electricity) supply, communications, manufacturing and services in Nigeria and the West African sub-region. African Capital Alliance mobilizes long-term capital from institutional investors to promote private sector led investments.

The investors in CAPE III include well-known international development finance institutions such as CDC Group, the European Investment Bank, the International Finance Corporation, and Netherlands Development Finance Corporation. In addition, commitments have been made by Nigeria-based institutional investors including First Trustees Nigeria Plc, AIICO Insurance Plc, Africa Re-insurance Corporation and some high net worth individuals.

CAPE III will seek to acquire significant interests in companies with high growth potential and up to 40 per cent of the fund may be invested in companies in the energy sector. Economic reforms and liberalization in Nigeria and other West African markets, a scarcity of capital, and relative availability of attractive assets have created unique private equity investment opportunities.

CAPE III is the latest private equity fund sponsored by ACA since its launch in 1997. ACA currently manages over USD 500 million of aggregate capital including a USD 170 million real estate fund launched in 2008. Having concluded the first close of CAPE III in May 2009, ACA is targeting a CAPE III final close with aggregate commitments of $350 million.