The Abraaj Group, a leading emerging markets investment firm announced last Monday that it has held the final close for its second North Africa-dedicated fund, raising a total of $375 million. Commitments to Abraaj North Africa Fund II (ANAF II) came from both existing and new investors made up of global institutional investors, sovereign wealth funds, pension funds and development finance institutions. European and North American investors accounted for 63% of the capital committed.
The fund will follow a similar strategy to its predecessor, Abraaj North Africa I, taking majority or significant minority stakes in businesses where Abraaj will have scope to influence the strategic direction and growth agenda. The fund will target mid-market companies in Algeria, Egypt, Morocco and Tunisia with robust growth rates and the potential to become regional leaders in their fields. A particular emphasis will be on those sectors that look poised to benefit from demand created by an expanding middle class, including healthcare, education, consumer goods and services as well as business services, materials and logistics. ANAF II has already made six investments in its target markets, including its initial $145 million investment in North Africa Hospital Holdings Group in the first quarter of 2015. which it announced in
“North Africa has the highest income level on the continent with a middle class that is expected to double its consumption between 2014 and 2024, leading to the creation of further investment opportunities across diverse sectors,” commented Afir Naqvi, Abraal’s Group CEO in the statement announcing the fund closing.
With the closing of ANAF II, The Abraaj Group has raised almost $1.4 billion this year for investments in the African continent. In April Abraaj raised $990 million for the group’s third Sub-Saharan fund.