BTG Pactual plans US$1bn Africa fund

BTG Pactual plans US$1bn Africa fund

Published: May 9, 2012

Brazilian bank to target energy, agriculture and infrastructure deals.

BTG Pactual, a Brazilian investment bank, is to launch a sub-Saharan Africa-focused private equity fund worth up to US$1bn, according to reports in Brazil.

The bank is in a closed period following its IPO in April, and so could not comment on the fund when contacted by EMEA Finance. However, local reports claim that in the next six to 12 months the bank will target institutional investors and pension funds in Brazil. It could also look to international investors to support the fund.

The fund is part of BTG’s strategy to become a major emerging markets player and will focus on energy, agriculture and infrastructure deals.

BTG’s fund follows the launch of an Africa fund by US private equity firm Carlyle in March 2011.

Sachin Date, Ernst & Young’s private equity leader for Europe, the Middle East, India and Africa, told EMEA Finance that private equity firms are looking for the next growth area.

“The reality is Africa could potentially provide that,” he added. “You have almost 1bn consumers, continuing to grow quite fast. That provides opportunity. Where India and China were 10 to 15 years, ago Africa might be today.”