Investec Asset Management has successfully closed the Investec Africa Credit Opportunities Fund 1 at U$226.5 million.
The Dutch development bank, FMO, and the UK’s Development Finance Agency, CDC, played an instrumental role in anchoring the fund. The investor-base includes insurance funds, pension funds, fund of funds, endowments and development finance institutions from across the US, Europe and Africa.
John Green, Global Head of Client Group, Investec Asset Management, explains: “The first dedicated African credit and debt capital markets fund of its kind globally, it aims to provide growth capital to African companies, thus offering an alternative to traditional bank funding, encouraging growth and employment, and fuelling the long-term development of Africa’s debt capital markets.”
The Fund is managed by Investec Asset Management’s South Africa and Frontier Credit team, which pioneered the development of this asset class in Africa back in 2008. It is designed with the aim of giving investors high yields, the ability to access the African public and private markets across all sectors, US$ exposure and lower volatility than other risk assets. The Fund’s strategy has three main aims – to develop and catalyse the development of African debt capital markets; to generate a high running yield and capital gains from investing in African credit opportunities; and to invest in sustainable businesses that have a high standard in managing ESG risks.
Steven Loubser, Portfolio Manager at Investec Asset Management, adds: “We believe we are backing the future champions in their industries across the continent. The large demand for funding on the continent and the lack of dedicated African credit funds should provide a strong investment backdrop, with credit providing an excellent entry point into the long-term African growth story. We are very well positioned to take advantage of these opportunities with our extensive experience of investing in emerging markets, underpinned by our heritage giving us deep insight into the drivers of African markets.”
Launched in South Africa in 1991, Investec Asset Management is one of the first asset management firms to build a global franchise from emerging market origins offering a broad range of Africa-specific investment strategies.