Africa50 announced on Tuesday the creation of a new fund to be called the Africa50 Infrastructure Acceleration Fund, which is aimed at catalysing further investment flows into African infrastructure.
Africa50 named African private equity executive, Mr. Vincent Le Guennou, to lead the new entity, with the objective of raising US$500 million in multiple closings, for investment across the continent.
The new Fund is a result of a long-haul effort by Africa50 to mobilize further capital to help bridge Africa’s infrastructure financing gap. The Fund’s mandate is to deliver attractive risk-adjusted returns for institutional investors looking for exposure to African infrastructure assets, while playing a critical role in financing medium and large-scale infrastructure projects in Africa:
- The new fund will mobilize resources from private and institutional investors in Africa and globally, some of which are currently mostly untapped sources of capital for African infrastructure.
- While it will originate its own investment opportunities and make its investment decisions independently, the new Fund is also expected to explore co-investment opportunities with Africa50. It will leverage Africa50’s capabilities in key areas such as deal flow generation, project development and project financing, as well as Africa50’s solid networks on the continent and globally, and strong African government relationships.
- The new Fund intends to invest in power, transport, ICT, midstream gas, health, and education sectors that are key pillars of African economies’ sustainable and impactful growth, and which strengthen Africa’s resilience.
This new investment vehicle is designed for investors looking to gain exposure to bankable infrastructure projects and assets in Africa and seeking to earn risk-adjusted returns, while also contributing to the continent’s development.
As sponsor of the Fund, Africa50 intends to make a meaningful investment commitment to it.
Leadership, Governance and Structure of the Fund
Mr. Vincent Le Guennou will lead the new Africa50-sponsored fund as its Chief Executive Officer, lending his considerable and successful experience and strategic leadership in private equity across Africa. He will be joined by a team of highly skilled executives and professionals with extensive investment and infrastructure experience, as well as strong market knowledge, drawn from a rich and diverse talent pool in Africa and globally.
The Africa50 Infrastructure Acceleration Fund will operate under best international standards including a GP-LP structure and governance framework. Like Africa50, the Fund’s investment decision-making and portfolio management procedures will integrate international environmental, social and governance (ESG) practices.
On the occasion of the announcement, Alain Ebobissé, CEO of Africa50, declared “Sponsoring the Africa50 Infrastructure Acceleration Fund is a critical pillar of Africa50’s capital mobilization strategy. It will enable us to tap into a different pool of investors as well as long-term savings to increase Africa’s infrastructure investment capabilities. Attracting more private sector capital is key to relieving already-constrained public budgets and contributing to the continent’s growth and post-pandemic recovery. I am delighted to welcome Vincent as the CEO of this new Africa50-backed fund. He brings international stature and considerable experience in structuring transformational private equity deals across Africa. His strategic results-driven leadership and impressive record as an innovative thinker will be strong assets that underpin the success of the Fund.”
“Having devoted my professional life to investing in Africa’s private sector, I have seen first-hand the need for improved infrastructure to support business competitiveness and accelerate growth. Infrastructure is an asset class that I know well and have invested in over the years. I am pleased to join the Africa50 Group to lead this new infrastructure fund at such a crucial time in our continent’s development. I am excited by the opportunity to build a successful investment vehicle backed by a strong African investor with the goal to deliver attractive returns and excellent development impact.” Vincent Le Guennou said about the announcement.
Africa50 is a pan-African investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalysing public sector capital, and mobilizing private sector funding. It prioritizes investment in medium to large-scale projects in the power, transport, ICT and midstream gas sectors, providing an appropriate risk-adjusted return to investors while delivering development impact. Africa50’s investor base is currently composed of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information: www.africa50.com