Emerging Capital Closes Latest Fund
The PE firm has made multiple recent investments in telecommunications and infrastructure in developing African nations.
July 26, 2010
Emerging Capital Partners completed the fundraising for its latest vehicle, ECP Africa Fund III, with total commitments of $613 million, marking the seventh fund managed by the private equity firm.
Return investors African Development Bank, International Financial Corporation, the Overseas Private Investment Corporation and the UK government supported the fund with more than $450 million. Other investors such as South Suez also participated in the fundraising.
The fund is one of ECP’s largest, bringing the firm's total capital raised to more than $1.8 billion, with more than $1 billion invested to date.
The new vehicle, like its predecessors, will pursue deals through equity and quasi-equity investments including convertible debt instruments.
ECP's Africa Fund II was raised in 2005, with $523 million of capital at its disposal. That fund succeeded the AIG African Infrastructure Fund, which collected a total of $407.6 million, with sponsorship from American International Group and the International Finance Corp.
Already, the PE firm has begun investing from the new vehicle. It has made four investments totalling more than $180 million in commitments. Investments include stakes in Financial Bank, which provides banking services in Central and West Africa; Wananchi Group, the Zuku-branded pay television and high-speed internet provider in East Africa; Groupe NSIA, the West and Central Africa insurer; and canned tuna provider Thunnus Overseas Group.
In raising the fund, ECP was also able to capitalize on a number of exits. In June, it sold its stake of nearly 90% in Central African Gold Plc to strategic buyer New Dawn Mining Corp., a Canadian, Toronto-listed company.
The new vehicle also comes as the firm maps out its succession plan. In March, Thomas Gibian shifted to the chairman role and Hurley Doddy and Vincent Le Guennou split the chief executive role.
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