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Kingdom Zephyr raises USD492m for Africa fund

Kingdom Zephyr Africa Management, the pan-African private equity investment firm, has completed the final closing of Pan African Investment Partners II Fund with total commitments of USD492m.

The funds seek attractively valued investment opportunities in companies with clear business models and a record of profits in high-growth, strong demand sectors across all regions of Africa. 

The PAIP II fund is a follow-on to PAIP I, which was launched in 2003 with USD122.5m in capital. 

PAIP II has completed three investments since its first closing in June 2008:

• USD20m in South Africa-based power infrastructure and heavy building materials company, Buildworks Group, listed on the Johannesburg Stock Exchange and active across Africa;
• EUR14.3m in Thunnus Overseas Group, a producer and distributor of canned tuna with operations in Cote d’Ivoire, Madagascar and France; and
• EUR35m in Mixta Africa, a real estate developer with projects in Morocco, Senegal, Mauritania, Tunisia, Algeria and Egypt.

“The level of interest in the PAIP II fund highlights the ever-increasing focus on Africa as a key emerging market. Despite current global conditions, long-term improvements in the African investment environment and a number of significant business success stories in the region have all contributed to improved investment prospects,” says J. Kofi Bucknor, managing partner of Kingdom Zephyr. 
Capital commitments to PAIP II have been provided by private sector investors, development finance institutions and wealthy families from Africa, Asia, Europe, the Middle East, and the US.  

Investors include Kingdom Holding Company (the investment vehicle of HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia), an affiliate of Temasek Holdings of Singapore, the African Development Bank, the European Investment Bank, the International Finance Corporation (private sector arm of the World Bank), FMO (Netherlands Development Finance Company), and the Development Bank of Southern Africa.

Kingdom Zephyr manages the investments of the PAIP funds from its offices in Accra, Johannesburg, London and New York.

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