The Abraaj Group (‘Abraaj’ or the ‘Group’), a leading investor operating in global growth markets, today announced the final close of its second dedicated North Africa private equity Fund at US$ 375 million. The new Fund brings the total amount closed by Abraaj for the African continent in 2015 to US$ 1.37 billion, having raised US$ 990 million in April for its third Sub-Saharan Africa Fund.
Abraaj North Africa Fund II (‘ANAF II’ or the ‘Fund’) targets well-managed, mid-market businesses in the core geographies of Algeria, Egypt, Morocco and Tunisia that have demonstrated robust growth and the ability to become regional leaders in their field. The Fund focuses on sectors that are likely to benefit from an expanding middle class, such as healthcare, education, consumer goods and services, business services, materials and logistics. The Fund follows the investment strategy of its predecessor, the Abraaj North Africa Fund I, and will target both majority and significant minority stakes in businesses that allow the Group to influence the strategic direction and growth agenda of its investee companies.
ANAF II received support from a diverse group of new and existing investors, including global institutional investors, pension funds, sovereign wealth funds and development finance institutions. 63% of the capital committed to the Fund has come from European and North American investors, with institutional investors, pension funds and development finance institutions accounting for 86% of the committed capital.
To date, ANAF II has made six investments across its target markets in the education, healthcare and industrials sector. In 2015, the Fund made its initial investment in the North Africa Hospital Holdings Group, a healthcare roll-up platform with assets in Egypt, Morocco and Tunisia that will enhance the quality, provision and access of healthcare across the region.
Commenting on the Fund closing, Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group said, “The successful closing of our second generation North Africa Fund demonstrates the continued optimism and belief of our investors in the economic growth and development of this dynamic region. North Africa has the highest income level on the continent with a middle class that is expected to double its total consumption between 2014 and 2024, leading to the creation of further investment opportunities across diverse sectors. By leveraging our deep local knowledge, global underwriting standards and successful track record, we are well positioned to identify and partner with high growth businesses that we can develop into regional champions. We look forward to investing this Fund successfully and thank our investors for the confidence they have shown in Abraaj.”
Abraaj has helped pioneer the growth and development of the private equity industry in Africa with more than a decade of investing experience with c.US$ 3 billion in committed and deployed capital across the continent. Abraaj has been investing in North Africa since 2006 and has made 23 investments across eight sectors as well as 11 full and partial exits from these investments. The Group has a dedicated team of 14 investment and operating professionals across four offices throughout the region in Egypt, Morocco, Algeria and Tunisia, with 96% of its investments in North Africa having been sourced by its local teams.