Carlyle Group is spinning out its Sub-Saharan African team to Alterra Capital, a new company formed by the managers of its $700m regional fund, Bloomberg reported.

The private equity firm will move the team, which includes Eric Kump, Genevieve Sangudi, Bruce Steen and Idris Mohammed, to Alterra Capital Partners from July, according to a person with direct knowledge of the matter.

Alterra Capital Partners will assume the management of the fund as sub-advisers to Carlyle, which will continue to invest in the continent through a strategic relationship with the new firm and its international energy fund, the person said.

The team will continue to be based in Johannesburg and Lagos.

Launched in 2011, this fund invests in Sub-Saharan Africa with a particular focus on South Africa, Nigeria, Kenya, Tanzania, Ghana, Mozambique, Botswana, Zambia and Uganda.

The Sub-Saharan fund completed 10 deals of more than $400m in the past three years, including the purchase of a majority stake in promotional products and clothing distributor Amrod, and in health and occupational safety business Nosa Group.

“Carlyle confirms that it has reached an agreement with the Carlyle sub-Saharan Africa Fund team to transition them to a standalone business, Alterra Capital Partners,” the Washington-based company said in an emailed response to questions from Bloomberg.

“Carlyle continues to believe Africa is an important region strategically and maintains its active presence on the continent.”