AfricInvest targets $200m for Maghreb Fund IV, eyes EIB pledge

The bank will decide by November whether to commit to the private equity vehicle, which has the same target as its predecessor but a higher hard-cap.

The European Bank for Reconstruction and Development is considering a €20 million commitment to Maghreb Private Equity Fund IV, the latest vehicle Africa-focused private equity firm AfricInvest is raising.

The Tunisia-based fund manager is aiming to raise $200 million for Maghreb Private Equity Fund IV and has set a hard-cap of $275 million.

AfricInvest has set the same target as it had for its previous Maghreb Private Equity Fund, which closed in 2011 on €156 million. The EBRD, which is aiming to make a decision on the commitment in November, has had a relationship with AfricInvest since 2012, when it invested €28 million in fund III. Other investors in that fund included the African Development Bank, the Belgian Investment Company for Developing Countries, BPI France and Caisse des Depots et Consignations.

“The Fund will seek to realize long-term capital gains through investing in a diversified portfolio of small and mid-cap companies in Tunisia, Morocco and Egypt,” according to a project summary document the EBRD posted on its website.

It is unclear whether Maghreb Private Equity Fund IV will have a heavy focus in agribusiness and agriculture, but its three predecessors have invested in a number of agribusinesses, including Moroccan poultry producer Mavi, Algerian snack producer Snax and Tunisian seeds distributor Cotugrain. AfricInvest had not responded to a request for comment by press time.

Founded in 1994, AfricInvest is part of the Integra Group, an investment and financial services group. Since its founding, the firm has invested in more than 135 companies and currently has $1 billion of assets under management across 16 funds.

Its current agribusiness/agriculture portfolio comprises eight assets including Jafara, a Libyan company specializing in the production and distribution of mineral water, juices and harissa; and Morocco’s Sicopa, a producer of olives, dried tomatoes and pepper.