Top 30 Funds to watch in 2023

LPs looking at Africa are being presented with an interesting bouquet of funds in 2023, many of which are selling mid-cap generalist strategies. Private Equity Africa looks at the first 30 of a full list of 60* key vehicles to look out for in 2023. The list excludes venture capital and debt vehicles.

A.P. MØLLER CAPITAL is on the road to raise a $1.5 billion fund that has a significant allocation to Africa. The fund is a successor to its maiden vehicle which is now fully invested across nine deals. A.P. Møller’s maiden fund had raised the bulk of its capital from Nordic pensions managers.

A SOUTH AFRICAN FUND MANAGER has been mandated to fundraise a $1 billion fund-of-funds that will back vehicles across sub-Saharan Africa. This vehicle has already had a first close, anchored by developmental capital. The fund manager won the mandate to co-manage the vehicle with a South-Africa based financial services company.

AFRICINVEST is in the market with a specialist healthcare Africa-focused vehicle which is sized as a small-cap vehicle. The fund managed under a newly set up specialist platform, in partnership with, a US-based healthcare focused financial services company. AfricInvest closed two funds in 2022, a generalist private equity vehicle and an early-stage co-managed one.

ADENIA PARTNERS has been blazing the fundraising trail with its fifth African generalist vehicle  which has already hit first close with 75% of the fund already raised.  The vehicle was lifted to first close by a number of new and returning LPs including development financiers and commercial players. The latest vehicle is about 57.7% larger than its predecessor.

AN AFRICAN SPECIALIST PLAYER is on the road to raise a fund that is headed by an Emerging Capital Partners (ECP) co-founder. The senior team includes an ex-Metier investor relations head and an African Venture Capital Association ex-co-chair. LPs in the fund include an African sovereign wealth fund (SWF).

A EUROPEAN ASSET MANAGER has been raising a $242 million fund-of-funds to back generalist vehicles across Africa. The vehicle has already made commitments to a number of vehicles, including backing the first close of a North Africa vehicle and is also in the final close of an East Africa focused vehicle. Other fund commitments include one to a West Africa vehicle.

AFRICAN INFRASTRUCTURE INVESTMENT MANAGERS (AIIM) is raising its fourth SSA mid-cap infrastructure vehicle. The vehicle attracted a commitment from a North America-based LP earlier in 2023. AIIM in 2021 beat the target on its Southern African Development Community (SADC) vehicle by 20%.

ADMAIUS CAPITAL PARTNERS is raising its maiden fund which has already hauled in 50% of the final target at first close. This vehicle is anchored by two LPs – a middle eastern SWF and an African pensions manager. The fund was set up by ex-Carlyle SSA co-head, with senior hires from Amethis, Duet, Abraaj and Apis. The fund has already closed two deals – one in South Africa and another in Tunisia.

ALTERRA CAPITAL PARTNERS is in the market with a maiden vehicle that attracted a US-based LP in 2022. The GP was set up by the ex-Carlyle Africa team, which later bolstered its senior team with two ECP senior partners. Alterra also still manages the Carlyle’s large-cap maiden Africa vehicle which had beat target by almost $200 million.

ALTA SEMPER CAPITAL is on the road to raise its second Africa-focused fund. The vehicle follows in the footsteps of its maiden fund which was set up to back companies operating in the consumer and healthcare sectors – with a strategy to acquire controlling stakes. The first fund has already delivered exits, including  the $178million listing of a consumer deal in North Africa.

AMETHIS is back on the fundraising trail with its third Africa vehicle – sizing it at 50% larger than its predecessor. The GP closed the preceding fund at 25% above target.  Amethis is in tandem raising a European fund, that is set to roll back some of the capital into Africa – managed by two recently hired partners.

APIS PARTNERS is raising its third emerging market vehicle that has a significant focus on Africa – following a sophomore fund that closed at 40% over target. The fund is being raised in parallel with a $1 billion fund – with the two set to co-invest.  Fundraising was recently boosted by the hire of Helios Investment Partners’ fundraising head.

ÀRGENTIL CAPITAL MANAGEMENT is racing towards the first close of its third West Africa-focused vehicle – expected by the first half of 2023. The latest fund follows a generalist strategy, with leaning towards agribusiness, consumer, technology and energy spaces.

A SPECIALIST INVESTOR is in the market with sophomore vehicle – with a revised target. The vehicle was initially set up to target $400 million at final close, which has since been revised to $300 million. The GP touched first close at 51.3%  in 2021. The first close included capital from an Africa-based LP.

AN INFRASTRUCTURE INVESTOR is sailing with a $300 million Africa-focused vehicle that will invest in the renewable energy space. The GP is raising the fund with an energy developer it set up in 2017. The developer has been tasked with developing the assets to operational level, at which point the GP will come in with investment capital.

INFINITE PARTNERS has hit the trail with a maiden generalist mid-cap vehicle. The new fund follows in the footsteps of the  Ethos mid-cap vehicle that it inherited when it spun out – which is now fully invested. Infinite Partners is 25% owned by US private equity giant Rohatyn Group’s (TRG), which took over the stake when it bought Ethos in 2022.

A FRENCH INVESTOR is sailing towards a 2023 first close on an emerging markets sophomore vehicle that has an 85% allocation to Africa. The final close is expected in 2024. LPs in the fund include a family office, which has committed $15 million, and a corporate investor to the vehicle. Both LPs are based in France.

INSPIRED EVOLUTION is in the market with its third vehicle, which has already raised 49% of the final targeted amount at first close – from seven LPs. Included in the pack of LPs is an asset manager based in Germany. The latest vehicle is about 85% larger than the predecessor vehicle, which had about 12 LPs in its pool including a US investment bank.

LEAPFROG INVESTMENTS is raising its fourth emerging markets-focused vehicle – sized at $1 billion. The vehicle has a significant allocation to Africa and is 30% larger than its predecessor. The vehicle is backed by a Singaporean sovereign investor, which  backed it with $500 million in 2021 – also acquiring an undisclosed minority stake in the GP.

A SOUTH AFRICAN GP is back on the trail with its third African specialist vehicle. The fund has been sized at $250 million, with a lower limit set at $200 million. This latest vehicle is about 25% larger than the predecessor which closed with even LPs. The vehicle will back infrastructure and manufacturing deals across SSA.

MEDITERRANIA CAPITAL PARTNERS has been sailing in the second fundraising phase with its fourth regional generalist vehicle. The mid-cap vehicle has crossed first close with capital from a number of return LPs that are backing the manager for the third time. LPs in first close include an asset manager based in Germany. Mediterrania beat its previous fund target by about 14%.

THE ROHATYN GROUP (TRG) is on the road with a new emerging markets technology fund that will focus on the artificial intelligence (AI) space, partnering with a specialist GP. TRG will focus on fundraising, while the other will be responsible for deal sourcing. Meanwhile, TRG has also taken over the Ethos funds – solidifying over 400 LPs.

HELIOS INVESTMENT PARTNERS is on the trail with a specialist vehicle that is anchored by a UK-LP. The GP plans to list the fund’s assets within three years of final close. Helios is also separately raising a venture capital fund that is headed by an ex-DFI early-stage investor. Helios in 2022 also bolstered its technology deals team with an ex-Facebook executive.

AN EX–ABRAAJ PLATFORM is on fundraising trail to raise a regional vehicle that has been sized at $300 million. The vehicle is a successor to an ex-Abraaj fund closed at 25% above target .The new fund will seek to make equity and equity-related investments in mid-cap companies.

INJARO INVESTMENT ADVISORS is on the road with its first local currency vehicle, which has been upsized to accommodate more LPs. The vehicle touched first close in 2022, at almost 85% of the original targeted amount – with capital from a number of pension funds. LPs include an African sovereign wealth fund (SWF) which has committed about $2 million to the fund.

A REGIONAL GP is working on plans to touch first close on its sophomore vehicle in the second half of 2023. The GP had initially been planning to hold the first close in the third quarter of 2022. The vehicle is sized at $200 million, with the lower limit set at $150 million. The new fund is two times larger than the $75 million raised for its maiden vehicle.

PEMBANI REMGRO is in the market to raise a mid-cap vehicle. The vehicle recently attracted a Luxembourg-based LP to the fund. Pembani’s vehicle follows in the footsteps of its maiden fund – which was closed in 2016. Part of the new fund’s strategy is to roll out a buy-and-build strategy – acquiring stakes in late-stage companies and bolting on additional assets.

SANARI CAPITAL has been raising its small cap vehicle which was renamed to reflect its growth strategy. The vehicle was buoyed to first close in 2022 by commitments from a fund-of-funds investor. LPs include a South Africa-based pensions manager fund. This latest vehicle has been sized at almost six times larger than its predecessor.

TANA AFRICA CAPITAL has been raising its sophomore Africa-focused vehicle. The vehicle received a debt commitment from a South Africa-based financial services company in 2022. Tana Africa will use the new capital for capacity expansion, as it works to back more deals in high-growth sectors, across Africa.

TLG CAPITAL has been raising a new fund which was restructured in 2021 to incorporate an equity strategy. The fund was initially set up to back credit deals. TLG in 2022 also set up a $400 million credit platform with Norsad Capital while separately launching a new fund with a venture capital fund  investor. TLG also manages a Tunisian sub vehicle.

Please click here to see the full list of the 60 featured 2023 Funds to Watch.

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