OPIC Board Approves $100 Million for African Investment Fund
April 1, 2010
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC) approved $100 million to support the establishment of a private equity investment fund designed to invest in growing companies and buyouts in Africa.
Helios Investors II, L.P. will use a two-pronged investment strategy, making equity investments in nascent businesses with high growth potential; and buyouts of large, established companies, most likely divisions of Western multinational corporations. The fund will target sectors that are central to the function of African economies, and therefore geared to domestic economic growth rather than broader global factors. It has a target capitalization of $600 million.
Sectors targeted for the fund’s investments include financial services, telecommunications, power and utilities, transport and logistics, real estate, agribusiness, mining, oil & gas, and consumer products. The fund’s investments will focus on Nigeria, Ghana, Kenya, Angola, and South Africa, as well as Cote D’Ivoire, Tanzania, and Uganda.
The fund’s strategy is similar to that of its predecessor, Helios Investors L.P., to which OPIC provided a $50 million facility in 2006. The first fund closed in 2006 with $305 million in capital investments.
OPIC selected as fund manager Helios Investment Partners LLP, which is headquartered in London.