Abraaj Group has closed its second North Africa fund at US$375 million as the Dubai-based private equity firm seeks to boost investments in Africa after raising $990m this year for sub-Saharan opportunities. The fund yesterday said it would invest in mid-market companies in Algeria, Egypt, Morocco and Tunisia, focusing on sectors that benefit from a rising middle class, such as health care, education, and consumer goods and services.
The fund aims to acquire majority and significant minority stakes in businesses.
“North Africa has the highest income level on the continent with a middle class that is expected to double its total consumption between 2014 and 2024, leading to the creation of further investment opportunities across diverse sectors,” said Arif Naqvi, the group chief executive of Abraaj Group.
European and North African investors provided about 63 per cent of the capital for the fund, and pension funds and development finance institutions provided 86 per cent of the committed capital.
The second North African Fund has invested in six businesses in the industrial, education and healthcare sectors.
Abraaj has invested about US$3 billion in Africa in more than a decade.
One of the largest private equity firms in the region with assets of about $9bn, Abraaj has stakes in companies such as the low-cost carrier Air Arabia and the supermarket chain Spinneys.
dalsaadi@thenational.ae
