A team that spun out of Carlyle Group Inc., a global private equity firm, has received backing from Carlyle’s co-founders, David Rubenstein and Bill Conway, for a new Africa-focused fund. The fund, named Alterra Capital Partners, has raised $140 million in its first closing and aims to raise up to $500 million in total. It plans to invest in various sectors including telecommunications, technology, logistics, healthcare, consumer, and retail in Africa. Other investors in the fund include Standard Bank Group, International Finance Corp., and Allianz SE’s AfricaGrow fund, among others.
Key Points:
- Alterra Capital Partners, a new Africa-focused fund, has received backing from Carlyle co-founders, David Rubenstein and Bill Conway.
- The fund aims to raise up to $500 million and has secured $140 million in its first closing.
- It plans to invest in sectors like telecommunications, technology, logistics, healthcare, consumer, and retail across Africa.
- Other investors in the fund include Standard Bank Group, International Finance Corp., Norfund AS, and Deutsche Investitions-und Entwicklungsgesellschaft GmbH, among others.
- Alterra has already exited six companies and returned about $600 million to investors. The team has invested about $1 billion in 23 companies in Africa.
Analysis: The launch of Alterra Capital Partners demonstrates growing interest in Africa-focused investments, particularly from smaller firms looking to tap into opportunities on the continent. While larger private equity firms have scaled back their operations in Africa, smaller players are finding potential in startups addressing gaps in the market. The backing from Carlyle co-founders and other prominent investors is a testament to the perceived opportunities in African markets. Alterra’s focus on key sectors like telecommunications, technology, and healthcare aligns with critical areas for development and innovation in the region. It will face competition from established Africa-focused firms, but with a strong team and backing, Alterra is poised to make an impact in Africa’s investment landscape.
