Aliko Dangote, Africa’s wealthiest individual and Chairman of the Dangote Group, has joined forces with billionaire investors from the United States to support a new $500 million fund targeting investments in Africa.
According to a Bloomberg report, a team affiliated with Carlyle Group Inc. revealed on Wednesday that they had garnered backing from the founders of the prominent U.S. private equity firm, as well as Aliko Dangote, to establish the Alterra Capital Fund, which is exclusively dedicated to African investments.
Co founders and partners
Key figures in this fresh venture include David Rubenstein and Bill Conway, co-founders of Carlyle, as revealed by partner Genevieve Sangudi during discussions with Bloomberg.
As part of its ambitious objectives, the private equity firm aims to raise $500 million in the coming months, having already secured $140 million during its initial fundraising efforts.
In a landscape where major investors have been cautious about entering the African market, smaller firms are seizing opportunities presented by the burgeoning startup ecosystem.
These opportunities arise as startups seek to address the gaps in a continent marked by insufficient financial and logistical infrastructure.
Alterra Capital Fund intends to diversify its investments across various sectors, including telecommunications, technology, logistics, healthcare, and consumer retail, according to Sangudi.
Sangudi stated, “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.”
Key contributors to the Alterra fund also include notable institutions like Standard Bank Group Ltd., the International Finance Corp., Norfund AS, Deutsche Investitions– und Entwicklungsgesellschaft GmbH from Germany, and Allianz SE’s AfricaGrow fund, as confirmed by Sangudi.