Thursday, April 18, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > Fundraising

FIVE reaches second close targeting €200m

Anna Lyudvig
Oct. 4, 2018, 9:13 p.m.

Word count: 489

AfricInvest, a pan-African private equity firm, has announced the second close of FIVE, an evergreen platform for investing in financial institutions in Africa. 

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AfricInvest, a pan-African private equity firm, has announced the second close of FIVE, an evergreen platform for investing in financial institutions in Africa. 

The second closing brings FIVE’s total commitments to €61m.

Norfund, the Norwegian investment fund for developing countries; IFU, the Danish investment fund for developing countries; and Central Bank of Kenya Pension Fund, joined this investment round. 

“The new commitments of Norfund, IFU and CBK Pension Fund represent an important step in the life of FIVE. Each institution brings with them long and valuable experience investing in financial institutions in Africa. Their collective commitments will help support FIVE’s objective of universal access to financial services on the African continent, where the current banking penetration still remains below 20%,” said Mehdi Gharbi, Senior Partner at AfricInvest.

FMO and BIO, the development finance institutions of the Netherlands and Belgium, respectively, anchored the fund as initial investors in December 2017.

The fund is targeting a third closing in the next few months with the African Development Bank and other institutional investors that have already confirmed their commitment to FIVE. 

Subsequent closings will also take place over the next three to five years to reach the fund’s target size of €200m.

Erik Sandersen, EVP Financial Institutions in Norfund, said: “Norfund invests in financial institutions in developing countries to strengthen their ability to supply capital and financial services to micro-, small- and medium-sized companies. We appreciate the partnership with AfricInvest and believe that FIVE’s investments will contribute to increased financial inclusion and economic development in Sub-Saharan Africa.”

“In Africa, many entrepreneurs – especially female – are prevented from improving their business and livelihood due to the lack of access to finance. By investing in FIVE, we have teamed up with an experienced and responsible partner that can promote financial inclusion and access to
finance for African SMEs, which will help Africa to grow,” added Morten Elkjær, Vice President Finance Sector at IFU.

FIVE stands for Financial Inclusion Vehicle. 

The number five represents the aspiration of AfricInvest and FIVE’s investors to contribute to achieving universal access to financial services in Africa. 

As the current level of banking penetration on the continent is a mere 20%, achieving universal access will require a fivefold increase. 

Through its investments, FIVE aims to improve access to financial services for the growing African population, while achieving attractive financial returns for its investors.

Erik Bosman, FIVE’s Supervisory Committee Chairman, commented: “This second close confirms that well-reputed investors see the financial sector in Africa as an attractive investment opportunity, both for its financial returns and its impact on society.”

“FIVE’s aim of realizing universal access to financial services in Africa is one step closer to being accomplished. Together with the investors, the team will continue to work relentlessly on finding outstanding opportunities to deliver this promise. I am convinced FIVE will play an important role in the further development of the continent,” he said.

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