CDC, the UK’s development finance institutions, has recently allocated $20m to EuroMena III, a 9-year closed-end generalist private equity fund, and another $20m to Atlantic Coast Regional Fund II (ACRF II), a growth equity fund, managed by Dakar-based Advanced Finance and Investment Group (AFIG Funds).

“If Africa is to deliver on its economic potential, then it's vital that entrepreneurs have access to long-term, risk capital. That’s why we’re continuing to back funds like Atlantic Coast Regional Fund II and EuroMena III,” Murray Grant, Managing Director at CDC told Africa Global Funds.

EuroMena III achieved final closing in May 2016 with $150m commitments.

Capital Trust Group is the general partner of the Fund.

The Fund takes primarily minority positions in SMEs and mid cap companies in the MENA region.

The Fund expects to make approximately 8-10 investments with estimated ticket sizes ranging from $10m to $20m each.

The Fund’s investments in Africa include Elephant in Nigeria, Jasmin in Tunisia, BS Invest in Tunisia, Cap Retail in Morocco, and Investex Algérie in Algeria.

Grant said: “The EuroMena Fund III is managed by one of the best teams operating in the mid-cap space in North Africa. CDC’s support will help the team continue to make equity investments in businesses that can grow from national successes into regional champions.”

“As the EuroMena Fund III expands into making investments in sub-Saharan Africa, we’re delighted that our commitment has helped the fund raise $150m,” he added.

ACRF Fund II is a 10-year regional private equity fund, targeting a $300m capitalization to invest in African companies with strong regional growth potential.

The Fund aims to make a limited number of (mainly minority) equity and near-equity investments in Central and West Africa.

ACRF II target sectors include agribusiness, logistics and healthcare, infrastructure, financial services, consumer and retail.

ACRF II is the successor fund to Atlantic Coast Regional Fund (ACRF), a $122.1m vintage 2008 fund.

“CDC supported the team behind the first Atlantic Coast Regional Fund, which invests in growing SMEs in Central and West Africa, creating jobs and economic opportunity. Their second fund will follow a similar strategy, while expanding the local team and building an initial footprint in East Africa. CDC has worked closely with the team and played an important part in helping the fund reach its first close,” said Grant.