A.P. Moller Capital, managers of the African Infrastructure Fund, have secured an additional $100 million commitment from PFA Pension, Denmark’s largest pension fund with DKK 500 billion under management. The fund, which was launched in early August, now has $650 million in commitments.
The fund, which is targeting $1 billion in time for a final close at the end August next year, will back infrastructure opportunities across Africa, aiming to deliver returns in the high teens as well as deliver significant economic, social and governance impact in the assets and regions in which it invests.
The 10-year fund’s strategy will be primarily focused on transportation and logistics opportunities including rail, roads, ports and storage. In addition, the fund will also review opportunities within the energy and utilities sectors. Once deployed, it’s anticipated the fund’s portfolio will consist of between 10 and 15 assets. Typical investments are expected to range between $50 million and $200 million in size, with priority being given for opportunities in ten African countries, Nigeria, South Africa, Ghana, Egypt, Kenya, Cote d’Ivoire, Tanzania, Morocco, Ethiopia and Senegal.
Interest in the fund from investors is reportedly high. PFA Pension joins three other Danish pension funds – PKA, Pension Danmark and Lægernes Pension – on the roster of the new fund’s anchor investors.
“Since the Fund was launched [0n] 9 August we have experienced great interest from both potential investors and project partners,” commented Kim Fejfer, A.P. Moller Capital’s Managing Partner. “We are pleased and proud to welcome another anchor investor wanting to support a sustainable development and improve the living standards across the continent.”
A.P. Moller Capital is an affiliate of the Maersk shipping family’s A.P. Moller Holding and has been established to manage stand-alone funds to invest in infrastructure in emerging markets.