American billionaires David Rubenstein and Bill Conway, co-founders of the U.S.-based multinational private equity firm Carlyle Group, have teamed up with Africa’s richest man Aliko Dangote and a consortium of investors for the Alterra Capital Partners fund, a new Africa-focused initiative poised to make waves in the investment landscape.
The Alterra Capital Partners team, boasting more than 100 years of combined private equity experience and having previously invested more than $2 billion in 23 companies across Africa, is spearheading this ambitious venture.
With $140 million secured in its first closing, the team aims to raise up to $500 million in the coming months, signaling a strong commitment to Africa’s economic potential.
The fund’s primary objective is to construct a diversified portfolio, with a key focus on African companies generating the majority of their revenue in U.S. dollars.
This strategic move offers investors a safeguard against currency depreciation trends seen on the continent.
Genevieve Sangudi, a partner at Alterra Capital Partners, expressed enthusiasm about the fund’s prospects, stating: “This is an excellent time to put money to work in Africa as many of the current macro themes provide attractive potential investment opportunities. For example, the power challenges across Africa provide opportunities to invest in private distributed power solutions, while technology continues to drive Africa’s digital transformation at a rapid pace.”
Rubenstein, Conway, and Dangote are not the only heavyweights participating in this venture. Other notable investors in the Alterra Capital Partners fund include Standard Bank Group Ltd., International Finance Corp., Norfund AS, Germany’s Deutsche Investitions- und Entwicklungsgesellschaft GmbH, and Allianz SE’s AfricaGrow fund. This diverse group of investors brings a wealth of experience and resources to the table, further enhancing the fund’s potential for success.
Alterra Capital Partners was established through the merger of seasoned professionals from two of Africa’s most experienced investment managers, Carlyle Africa and Emerging Capital Partners. This strategic combination was driven by their longstanding working relationship, complementary investment strategies, extensive geographic footprints, and shared vision for unlocking Africa’s investment potential.
As Alterra Capital Partners sets its sights on hard currency-denominated and hard currency-linked investments, positioning itself as a hedge against currency depreciation on the continent, it enters a competitive landscape.
Other Africa-focused investment firms, such as Adenia Partners and Helios Investment Partners, led by Nigerian multimillionaire businessman Temitope Lawani, have also intensified their presence on the continent.
These firms have adapted their operating models and invested in local capacity, creating an environment ripe for investment and growth across Africa.
The launch of the Alterra Capital Partners fund, with its impressive backing and commitment to African economic development, adds another chapter to the evolving investment landscape on the continent.
As investors watch the fund’s progress with keen interest, it signals renewed confidence in Africa’s potential as a lucrative investment destination.