AfricaGrow fund of funds invests €30m in the African market
Allianz Global Investors’ €200 million AfricaGrow fund of funds, which was launched in November last year, has made its first two investments.
AfricaGrow is a public-private cooperation between KfW Entwicklungsbank, Allianz and DEG.
The first two investment tranches of around €15 million each went to SPE AIF I and the Cathay AfricInvest Innovation Fund (CAIF). SPE AIF I is a fund of SPE Capital Partners, a private equity fund manager based in Tunisia. It focuses on investments in portfolio companies located in North Africa and with strong growth potential in sectors such as manufacturing, services, logistics, healthcare and education. Currently, the fund is invested in four portfolio companies in Egypt, Morocco and Tunisia.
AfricInvest, also based in Tunisia, is pursuing a pan-African growth strategy through its VC fund, CAIF. It focuses on potential market leaders whose goal is to introduce established global technology concepts to the African region and to stand out mainly through innovative technologies. CAIF has invested in three portfolio companies so far.
Martin Ewald, managing director and lead portfolio manager for impact investments of Allianz Global Investors commented: ”Through the cooperation with SPE Capital Partners and AfricInvest, we have found excellent partners who have convinced us with their extensive network and local expertise and who mirror the investment strategy of AfricaGrow. The two investments lay the grounds for a balanced portfolio, which we will enrich in the near future with further capital placements in the African market.”
Jan Martin Witte, director of the equity finance department of KfW Entwicklungsbank said: ”With the AfricaGrow fund of funds, KfW Entwicklungsbank is implementing a key initiative of the development investment fund, which was launched by Chancellor Merkel during the ’Compact with Africa’ summit in Berlin in October 2018. We are pleased that with Allianz Global Investors we have found a competent partner who drives forward the implementation of the fund of funds’ investment strategy. We are convinced that these initial investments will make a significant contribution to the creation of growth and jobs in Africa.”
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