AFRICA – Dutch development financer FMO is evaluating a US$35 million investment in AfricInvest Fund IV, managed by private equity firm AfricInvest. The fund has a target size of US$500 million.

AfricInvest was founded in 1994 and is one of the most experienced private equity investors on the African continent. 

To date, AfricInvest has invested in more than 150 companies across 25 countries and has raised US$1.5bn across 18 funds.

AfricInvest aims to make growth-capital investments in mid-cap African companies that are well positioned in their local markets and are posed to scale up operations as they expand outside their borders to become “regional champions”. 

By investing in AfricInvest IV, FMO can contribute to the economic growth and private equity market development across the African continent.

This investment fits FMO’s strategy, deepening a relationship with an existing partner in African private equity investing, and contributes further to FMO’s ambition of being a preferred partner for growth in emerging markets.

AfricInvest has shown a solid commitment towards E&S and has a strong environment and social management system in place as well as an experienced and dedicated ESG manager in its team. 

Based on the risk profile of the pipeline companies, the preliminary E&S categorization is B (medium – high risk).

AfricInvest conducts rigorous ESG due diligence during its investment process and develops E&S action plans for its portfolio companies to bring them into compliance with the IFC Performance Standards.

The private equity firm targets growth-capital investments in small and medium-sized enterprises (SMEs) that are well-positioned in their local markets with the potential to scale up their activities beyond their own country’s borders and become “regional champions.”

AfricInvest was founded in 1994 and is part of Integra Group, an investment and financial services company based in Tunisia.

Uniquely positioned as one of the most experienced private equity investors on the continent, AfricInvest has dedicated investment teams focused on Africa, and employs 75 professionals based in ten offices.

Having co-founded the African Venture Capital Association (AVCA) as well as the Middle East North Africa Private Equity Association (MENAPEA) and the Euromed Capital Forum, the firm is an active promotor of the private equity industry in the region.