Africinvest Fund IV LLC
Africinvest Fund IV LLC (AF IV) is a Pan-African Fund established by Tuninvest Finance Group (AfricInvest). AfricInvest is an established private equity firm that invest in North and Sub-Sahara Africa since 1994. Over this period, the Fund Manager has raised USD 1.5bn across 19 funds.
The fund provides growth capital to mid-size companies across Africa in diverse industries such as financial services, manufacturing, healthcare, education, FMCG, logistics and distribution. AfricInvest is emphasizing impact and value creation through a hands-on investment strategy that contributes to the growth and implementation of best practices. The fund’s investment strategy is built on entering at robust multiples into leading companies, leveraging institutional expertise of investing in Africa, taking on strong minority positions with possibility of adding value as well as risk mitigation approach. The fund makes use of diversification and downside mitigation on transactions and has a responsible investing approach with a focus on ESG and the SDGs throughout the investment process.
Reasons for financing
AF IV investments provide equity financing to mid-size companies across Africa which is a major bottleneck for development. Furthermore, the fund will create new jobs and will generate local income.
DEG’s first close investment has a mobilizing effect in a fundraising environment that remains challenging in both emerging markets and Africa. In addtion, DEG will provide support regarding ESG and developmental impact.
The investment in AF IV fits good with DEG’s mandate to provide growth capital to private companies in underserved regions, notably in Africa. The fund investments are expected to contribute to job creation and economic development, and support companies to implement and comply with environmental, social and corporate government standards.