CDC backs African funds

CDC backs African funds

Published: October 16, 2014

UK’s development finance institution commits some US$45mn across funds managed by AfricInvest Capital Partners and Synergy Capital Managers.

CDC, the UK’s development finance institution, has made new investments in two Africa-focused funds.

The firm has committed up to €25mn (US$31mn) to AfricInvest Fund III, a fund raised by Tunisia’s AfricInvest Capital Partners to back small and medium-sized business across North, West and East Africa. AfricInvest closed the fund at €154mn.

CDC has also earmarked up to US$15mn for the Synergy Private Equity Fund, the first fund raised by Lagos and Accra-based Synergy Capital Managers. The firm aims to raise US$75mn to invest in midcap companies in Nigeria and Ghana.

CDC has made three African fund commitments in 2014, with the investments in AfricInvest and Synergy’s funds following a US$40m commitment to the Investec Africa Private Equity Fund II.