Issued by Aureos and Commonwealth Secretariat
The Commonwealth Secretariat, representing 53 countries around the globe, has assisted Aureos Capital, a leading private equity fund manager, to raise a private equity fund for Africa targeting a US$400 million final close.
The Aureos Africa Fund will provide long term capital for successful and promising small and medium enterprises across the continent. The Fund, which targets investments in sectors and countries where Aureos sees real potential for above average growth, has benefited from feasibility and due diligence studies supported by the Commonwealth Secretariat.
The Aureos Africa Fund has raised US$322.8 million to date. It has already made nine investments totaling US$106.2 million across sectors including financial services, building products, real estate development and agri-business in 18 countries.
In supporting the Aureos Africa Fund, the Secretariat is recognising that continued investment in the continent is essential - especially in the current global economic climate - if its development gains over the last few years are not to be reversed. The Secretariat’s relationship with Aureos - which specialises in investing in small to mid-sized businesses in emerging markets - dates back to 2005. The relationship is part of the Secretariat’s Commonwealth Private Investment Initiative, which has helped to raise some US$800m for investment in Africa, Asia, the Caribbean and the Pacific.
Ransford Smith, Deputy Secretary-General of the Commonwealth Secretariat, says: “Promoting investment in our member countries is a core activity of the Commonwealth Secretariat. Investment promotes economic development, raises income levels and promotes prosperity, improving the well-being of our member states. But of course while our focus is on promoting investment through our relationship with Aureos, we do not seek nor play any role in the commercial decisions of the funds.”
“The Aureos Africa Fund is a good example of how our relationship with Aureos works. The fact that the Fund has raised US$322.8 million in the current global economic climate is no mean achievement and was facilitated by feasibility and due diligence studies undertaken with the support of the Commonwealth Secretariat.”
“This Fund has the potential to make a real contribution to Commonwealth countries in Africa, by helping ordinary businesses to reach their potential and boost much needed growth and jobs across the continent. Ensuring that the private sector and SMEs in particular continue to have access to long term capital during the current global downturn, is key to ensuring a rapid and sustained recovery.”
Sev Vettivetpillai, CEO of Aureos Advisers Limited comments: “We are delighted with the assistance offered by the Commonwealth Secretariat. Its Private Investment Initiative played an important role in helping us set up the Aureos Africa Fund.”
Davinder Sikand, Regional Managing Partner of Aureos in Africa, says: “Africa has long been overlooked by institutional investors and small to mid-cap companies across the continent find it particularly hard to access equity investors. The Aureos Africa Fund is an essential part of the effort to address that problem.”
“Already the Fund has had considerable success in attracting first time investors into Africa. They realise that there is vibrant economic activity across Africa, with profitable growth opportunities priced at very attractive multiples.” “This Fund will not only provide investee companies with the risk capital they need to expand but also a high level of management support from Aureos’ experienced locally based staff. We will be focusing on improving investee companies’ governance, strategy, systems, and recruitment and bringing access to other investors and lenders through Aureos’ regional and global networks.”