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African PE Firm Raises $325 Million

Kingdom Zephyr Africa Management, a pan-African private equity firm, has held a $325 million first close for its second fund, which is targeting $500 million. Limited partners include International Finance Corp. and the Development Bank of Southern Africa.



Kingdom Zephyr Africa Management, one of the leading pan-African private equity investment houses, is pleased to announce that it has successfully raised over US$325 million for its second fund, Pan African Investment Partners II (“PAIP II”).


PAIP II is targeting up to US$500 million in capital commitments, and will make growth capital investments in profitable, growing businesses throughout Africa that operate or plan to operate in more than one African country. The new fund is a follow-on to PAIP I which was launched in 2003 with US$122.5 million in capital. PAIP I has made five investments to date in banking, mobile telecom, insurance, and consumer finance.


Capital commitments to PAIP II have been provided by a broad range of development finance institutions, as well as institutional and private investors from around the world including the Washington D.C.-based International Finance Corporation, the Development Bank of Southern Africa and Dutch Development Bank FMO. Kingdom Holding Company, one of the world's largest and most diversified private investment companies, is the largest investor in the fund, having committed 50% of the capital.


Kingdom Zephyr manages the investments of PAIP II and PAIP I from offices in Accra (Ghana), Johannesburg, London and New York.


“The successful first close of PAIP II highlights the continuing appetite for investment opportunities across Africa” noted J. Kofi Bucknor, Managing Partner of Kingdom Zephyr. “We continue to see strong economic fundamentals across the region and see excellent opportunities to invest in growing companies with sound business models and good management.”


“The strong levels of investor interest in our fund is an affirmation both of investors' belief that Africa will continue to be a region of above-average growth, and of our investment strategy, which seeks businesses poised to achieve critical mass in order to capitalize on that growth” commented Thomas C. Barry, Chairman of the Investment Committee at Kingdom Zephyr Africa Management.


Kingdom Zephyr Africa Management is a joint venture between Zephyr Management, L.P., a New York based asset management firm, and Kingdom Holding Company, an investment company headed by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia. A veteran in the pan-African private equity industry, Kingdom Zephyr enjoys the benefit of the combined experience of Zephyr Management and Kingdom Holding, which have been investing in Africa for over 13 years.