The AfricInvest Group has first closed its multi-sector private equity fund AfricInvest Fund III with a size exceeding €154m ($194.83m) in capital commitments.

Investors in the fund include development finance institutions (DFIs) and institutional investors such as the Netherlands Development Finance Company, CDC Group, the International Finance Corporation of the World Bank Group, DEG, Finnfund, PROPARCO, Swedfund, SIFEM, as well as other trusted private investors.

The group began fundraising for their third fund in July 2013.

AF III is a 10-year fund with a target size of €200m.

The fund will invest in small and medium enterprises (SMEs) in Sub-Saharan Africa, that are well-established in their local markets and that have the potential to scale up their activities at the regional level.

By investing in companies showing strong growth potential and creating significant value, AF III will contribute to improving the governance of these SMEs, creating new jobs, increasing foreign-exchange receipts, generating tax revenues for the governments of the region and more broadly to fostering regional economic integration.

AF III will invest in a broad range of sectors with a strong focus on companies manufacturing for export and those aiming to expand at the regional or continental level.

In addition, AF III will focus on promoting environmental, social and governance best practices in its portfolio companies.

Targeted investments will include sectors such as IT and telecoms, FMCG, services, health, education, transport and agribusiness.