First close for Ninety One's Africa Credit Opportunities Fund 3
ACO Fund 3’s first close has $260 million of committed capital to make private credit investments.
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Ninety One has announced the first close of its Africa Credit Opportunities (ACO) Fund 3.
Anchor limited partners in the fund include the International Finance Corporation (IFC), British International Investment, and the Swiss Investment Fund for Emerging Markets (managed by responsAbility), with Standard Bank of South Africa as the credit provider.
ACO Fund 3’s first close has $260 million of committed capital to make private credit investments in market-leading companies and infrastructure entities in Africa and other emerging markets.
The ACO Fund 3 aims to provide investors with competitive return outcomes whilst simultaneously advancing economic development through sustainable capital deployment in Africa and other emerging markets.
Standard Bank has committed a debt facility of $45 million in an innovative sustainability-linked loan, where the cost of funding is linked to the fund achieving certain climate/carbon and social impact targets.
The fund is led by portfolio managers Steven Loubser and Kobina Sam, who are managing directors in Ninety One’s Emerging Market Alternative Credit (EMAC) Team.
Nathaniel Micklem, co-head of Ninety One Emerging Market Alternative Credit said: “Along with our partners, we are very excited to be launching our 19th EM private credit fund. The strategy has a long history of supporting growth and infrastructure companies across Africa and other emerging markets. The ACO strategy has demonstrated the ability to generate stable real returns, outperforming the public and private credit benchmarks after costs, whilst developing the capital markets in which it operates.”
“This milestone marks a significant step in our commitment to fostering private sector-led growth and job creation across sub-Saharan Africa,” commented Kalina B. Miller, IFC’s financial institutions group regional industry manager for southern Africa. “By investing in market-leading companies and vital infrastructure, we aim to enhance access to finance, bridge infrastructure gaps, and improve the overall investment climate. Together, we can unlock the potential of high value-adding sectors and drive sustainable development in the region.”
Anthony Njoroge, principal and co-head Africa fund of funds at responsAbility, stated: “This investment highlights SIFEM’s strong commitment to advancing sustainable development in Africa, with responsAbility acting as SIFEM’s portfolio manager. By providing essential capital to medium-sized enterprises, we aim to drive economic resilience, create quality jobs, and support businesses that promote both social progress and environmental sustainability. Together, SIFEM and responsAbility are dedicated to ensuring that our investments have a lasting, positive impact on Africa’s emerging markets.”
Neha Bantha, executive vice president at Standard Bank added: “We successfully financed a bespoke, sustainability-linked debt facility for ACO Fund 3, acting as the Sole Mandated Lead Arranger and Lender, Sustainability Structuring Agent, Facility Agent, and Security Trustee for the deal. This transaction showcases our alignment with Ninety One with regards to investing in market-leading, high-quality infrastructure assets in the quest to drive development in African countries, reaffirming Standard Bank’s ambition to drive the sustainable economic development of Africa and further entrenching our relationship with the broader Ninety One group.
“Our extensive footprint and vast expertise across the continent demonstrate that we see Africa's development as intricately tied to advancing its infrastructure. This facility aligns with our strategic objective to deliver innovative and market leading technology that combine our clients' sustainability strategy with our banking solutions to enhance value for our clients, businesses, and society,” she concluded.
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