A.P. Moller Capital, an affiliate of the Maersk shipping line family’s A.P. Moller Holding, will manage a new Africa-focused infrastructure fund which held a $550 million close last week, garnering commitment from several anchor investors. The fund, which is targeting $1 billion in time for a final close at the end of the 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.
Three Danish pension funds – PKA, PensionDanmark and Lægernes Pension – are the other anchor investors. 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.
“We are very pleased with the significant support from the Danish pension funds and A.P. Moller Holding,: said Kim Fejfer, Managing Partner and CEO of A.P. Moller Capital. “Together, we will build and operate infrastructure business in Africa to support sustainable development and improvements in living standards across the continent. We will combine the best from industry in terms of project management and operational capabilities with the best from private equity in terms of agility and focus.”
A.P. Moller Capital’s team is lead by four partners, Kim Fejfer, Lars Reno Jakobsen, Jens Thomassen, (who was previously with Denham Capital), and Joe Nicklaus Nielsen. Danish law firm Bruun Hjejle provided advisory services in establishing and structuring the fund.