A private equity initiative backed by Nigerian industrialist Aliko Dangote, Alterra Africa Accelerator Fund secures $20m from the United Kingdom, through its development finance institution, British International Investment (BII).
This investment aims to bolster mid-cap companies across Africa, focusing on sectors such as telecommunications, technology, financial services, consumer products, and infrastructure.
Alterra Capital Partners, established in 2020 by former Carlyle Group executives, has set an ambitious goal of raising $500 million to drive growth across various sectors in Africa. In its initial phase, the fund successfully secured $140 million, attracting a diverse group of investors.
Notable contributors include Carlyle co-founders David Rubenstein and Bill Conway, as well as institutional entities like Norfund AS, Standard Bank Group Ltd., International Finance Corp., Germany’s Deutsche Investitions- und Entwicklungsgesellschaft GmbH, and Allianz SE’s AfricaGrow fund.
The AAA Fund is strategically positioned to invest in companies that are well-positioned to benefit from Africa’s burgeoning population and increasing incomes. The sectors of interest—telecommunications, technology, logistics, healthcare, consumer goods, and retail—are pivotal for the continent’s economic advancement.
The fund aims to stimulate job creation, enhance productivity, and contribute to sustainable economic development across Africa by targeting mid-cap, EBITDA-positive companies that provide essential goods and services.
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Alterra Capital Partners operates out of offices in Johannesburg, Nairobi, and Mauritius, bringing together a team with over 100 years of combined private equity experience. The firm’s deep-rooted understanding of the African market positions it well to identify and nurture opportunities that align with the continent’s growth trajectory.
The $20 million commitment by BII to the Alterra Africa Accelerator Fund represents a significant step towards harnessing Africa’s potential. By focusing on essential sectors and mid-cap companies, the fund aims to drive sustainable economic growth, create employment opportunities, and improve the quality of life across the continent.
The commitment from BII and other investors not only provides the necessary capital to accelerate growth in key sectors but also serves as a testament to the increasing attractiveness of African markets to global investors.
As Africa continues to assert itself as a hub for innovation and economic opportunity, strategic investments like these will play a pivotal role in shaping its future trajectory.
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