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US private equity fund ECP raises US$640M for Africa

The largest private equity fund for African investment since September 2016, ECP Africa Fund IV attracted a broad range of public and corporate investors based in Africa, Europe, and North America.

Pan-African private equity investor- Emerging Capital Partners (ECP) has announced the final close of its fourth Pan-African fund, ECP Africa Fund IV (AFIV).

Domiciled in Mauritius, AFIV and its related co-investments received commitments of over US $640 million, attracting a broad range of investors based in Africa, Europe, and North America.

Through AFIV, ECP prides itself to have gathered the largest representation of African investors in its history, with a significant contribution from a variety of African pension funds and insurance companies. African investors represent over half of the total number of investors.

Limited partners include public and private pension funds, sovereign wealth funds, funds of funds as well as private sector investors such as Old Mutual Africa Private Equity Fund of Funds and a 57 Stars managed vehicle.

Development Finance Institution (DFI) investors include Société de Promotion et de Participation pour la Coopération Économique (Proparco, a subsidiary of Agence Française de Développement), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), African Development Bank, and Overseas Private Investment Corporation (OPIC).

Based on data published both by the African Private Equity and Venture Capital Association (AVCA) and the Emerging Markets Private Equity Association (EMPEA), AFIV represents the largest closing of an African private equity fund since September 2016, excluding infrastructure and real estate funds.

“ECP continues its strategy of focusing on investments that meet basic consumer needs or vital business requirements,” the PE firm affirmed.

AFIV is focused on control and significant minority stakes in four core sectors on a Pan-African level: financial services, consumer goods, telecommunications and  ICT, and infrastructure and logistics.

AFIV has already closed four investments with operations across seven countries and sustains a strong pipeline.

Through this new fund, ECP intends to promote its focus on environmental, social, and governance best practices as well as economic inclusion in its portfolio companies.

Domiciled in the US, ECP’s investment team is comprised of 29 seasoned investment professionals with strong on-the-ground coverage with six offices on the African continent.

Co-CEOs Hurley Doddy and Vincent Le Guennou said: “We are proud that investors have recognized our track record by committing their capital to our fourth fund. This successful fundraising is a further sign of their trust in our value proposition on the African continent.”

“ECP is a long-term investor with a patient view and it strives to establish larger platforms in a few select sectors such as energy, finance, and logistics. ECP has always worked hard to promote true African champions and has consequently been part of each chapter of the private equity evolution unfolding in Africa. With AFIV, ECP aims at deepening its commitment to Africa’s growth story,” the CEO’s added.

ECP draws on over 18 years of private equity investing experience in Africa and has completed over 60 transactions and 40 full exits.

It has raised over US$3 billion in growth capital through funds and co-investments. It seeks to identify opportunities that will benefit from the fundamental, long-term structural demographic and economic shifts driving Africa’s growth.

According to the management, ECP works closely with investees to implement best practices and strengthen business leadership.

Source: The Exchange

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