Abraaj earmarks $990m for investment in Nigeria, others | Independent Newspapers Limited
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Abraaj earmarks $990m for investment in Nigeria, others

Posted: Apr 14, 2015 at 7:36 am   /   by   /   comments (0)

By Sola Alabadan / News Editor, Sunday


Abraaj Group disclosed on Monday in Dubai that it has earmarked $990 million fund for investment in well-managed, mid-market firms in sub-Saharan African countries including Nigeria.

The emerging-market focused private equity firm said the fund, its third in the region, would also be deployed in Ghana, Côte d’Ivoire, South Africa and Kenya.

According to the organisation, European and North American investors committed 64 percent of the capital in the Abraaj Africa Fund III, with funding from global institutional investors, pension funds and sovereign wealth funds adding up to 76 percent.

Abraaj did not, however, disclose its own contribution to the fund.

Founder and group chief executive of Abraaj Group, Arif Naqvi, said “It (Africa) is a story driven by rapid urbanisation and favourable demographics that are fuelling consumption across multiple sectors from an expanding, young middle class.”

The new African fund will focus on well-managed, mid-market firms in sectors most likely to benefit from demand driven by the rapid expansion of a young, urban, middle class, Abraaj said, without naming specific companies.

The sectors include consumer goods and services, consumer finance, and resource and infrastructure services in the core countries of Nigeria, Ghana, Côte d’Ivoire, South Africa and Kenya.

Abraaj said it had deployed around $3 billion across the African continent, while in sub-Saharan Africa alone, it had made 67 investments with 30 full or partial exits.