Capitalworks, one of Africa’s larger private equity firms, has launched Africa Capitalworks, a planned $300 million investment company that will target mid-market opportunities in a number of sectors across sub-Saharan Africa outside South Africa. The investment vehicle will be directed by one of Capitalworks’ founders, Beth Mandel, and Nana Sao.
In its bid to raise the $300 million it has targeted, Africa Capitalworks has already received significant support and investment from, among others, CDC, the UK’s development finance institution and Public Investment Corporation, South Africa’s largest asset manager and manager of the Government Employees Pension Fund.
Employing a permanent capital structure rather than a traditional fund structure for the new investment vehicle reflects the investors belief and recognition that the significant imbalance between the supply of and demand for long-term capital in the rapidly growing and developing SSA economies and the mid-market companies within them is better served with longer-term capital solutions.
“We are pleased to extend our SSA strategy to this permanent capital format,” said Chad Smart, Capitalworks founder “By having multiple investment perspectives actively searching for attractive transaction opportunities, we will further differentiate ourselves from other players in the SSA market.”