Emerging Capital Partners, a private equity firm focused on investing across the African continent, has held the final close of its ECP Africa Fund III PCC with total commitments of over USD613m.
Africa Fund III, one of the largest funds ever raised for investment across the African continent, marks the seventh fund managed by ECP, bringing the firm’s total capital raised to more than USD1.8bn, with more than USD1bn invested to date.
Africa Fund III will seek controlling stakes or influential minority positions in high growth companies through equity and quasi-equity investments including convertible debt instruments. The fund targets companies focused on under-penetrated markets where factors such as industry consolidation, positive macroeconomic trends, liberalization and improved regulations offer opportunities for above-market returns.
Investing across various sectors, including telecommunications, natural resources, financial services, agriculture, transportation and utility businesses, ECP will focus on companies pursuing regional strategies.
"The positive response we’ve received from investors for Africa Fund III demonstrates the growing appreciation of the tremendous investment opportunity that exists across the African continent," says Hurley Doddy (pictured), co-chief executive officer of Emerging Capital Partners. "With more than a decade of African private equity experience, our team has the optimal combination of local market knowledge, operational prowess and financial expertise to provide investors with diversification and competitive returns by sourcing attractive investment opportunities and expanding our portfolio companies’ business into regional and global markets."
Africa Fund III was anchored by over USD450m from return investors, including the African Development Bank, the International Financial Corporation, the Overseas Private Investment Corporation and CDC, the UK government development finance institution. The remainder came from new investors such as pan-African fund-of-funds manager, South Suez.
"With its long track record of successful investing in Africa and established presence via six regional offices, ECP is a first choice for us when looking at investing on the continent," says Matthew Hunt, director of South Suez.