Tunisia:Private equity, AfricaGrow makes €30 million investment in two Tunisian funds
- 03 November 2020 / News / 142 / Emerging Africa
The AfricaGrow fund of funds, launched by Allianz Global Investors, has committed €15 million to the Cathay AfricInvest Innovation Fund (CAIF), managed by AfricInvest.
AfricaGrow, which is the product of a public-private cooperation between KfW Entwicklungsbank (on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ)), Allianz and DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, launched November last year with a target volume of €200 million.
According to the Africa Private Equity and Venture Capital Association’s website, AfricaGrow has made its first two investments of around €15 million each went to SPE AIF I and the CAIF.
"Through the cooperation with SPE Capital Partners and AfricInvest, we have found excellent partners who have convinced us with their extensive network and local expertise and who mirror the investment strategy of AfricaGrow,” Managing Director and Lead Portfolio Manager Impact Investments of Allianz Global Investors Martin Ewald said.
“The two investments lay the grounds for a balanced portfolio, which we will enrich in the near future with further capital placements in the African market,” he added.
For his part, Director of the Equity Finance Department of KfW Entwicklungsbank Jan Martin Witte said that with the AfricaGrow fund of funds, KfW Entwicklungsbank is implementing a key initiative of the development investment fund, which was launched by Chancellor Merkel during the Compact with Africa summit in Berlin in October 2018.
“We are pleased that with Allianz Global Investors we have found a competent partner who drives forward the implementation of the fund of funds' investment strategy. We are convinced that these initial investments will make a significant contribution to the creation of growth and jobs in Africa,” he indicated.
SPE AIF I is a target fund of SPE Capital Partners, a private equity fund manager based in Tunisia. It focuses on investments in portfolio companies located in North Africa and with strong growth potential in sectors such as manufacturing, services, logistics, healthcare and education. Currently, the target fund is invested in 4 portfolio companies in Tunisia, Egypt and Morocco.
AfricInvest, also based in Tunisia, is pursuing a pan-African growth strategy through its VC fund, CAIF. It focuses on potential market leaders whose goal is to introduce established global technology concepts to the African region and to stand out mainly through innovative technologies.
CAIF has invested in 3 portfolio companies so far.