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26 August 2022

Standard Bank provides African Private Equity Fund USD75m Capital Call Facility

Standard Bank has provided a fund subscription credit facility of USD75m for AfricInvest’s largest and most recent private equity fund to finance investments in accordance with its investment strategy.

The fund, AfricInvest IV, achieved its final close earlier this year with total commitments of USD411 million.  “Providing this facility is in line with Standard Bank’s strategic objective to deliver structured capital solutions to select Africa-focused private equity funds to facilitate growth. It is evidence of our ability to leverage off the broader group balance sheets and on the ground presence,” said Neha Bantha, Transactor, Leverage Finance, Structured Capital at Standard Bank Corporate and Investment Banking.  

“As we strengthen our partnership with AfricInvest, we intend to continue to support their underlying portfolio companies through the provision of financing solutions and other banking services,” Bantha added. 

Founded in 1994, AfricInvest is one of the important players within the African private equity, venture capital and private credit markets. The firm focuses on all sectors, including construction and manufacturing, consumer and retail, financial services, agribusiness, telecommunications and technology, pharmaceuticals, logistics and transportation, healthcare, and education.

It has successfully secured LP commitments across 21 funds deployed in more than 190 companies across more than 25 African countries. AfricInvest IV received investment from new and returning institutional investors, development finance institutions, and family offices around the world. 

AfricInvest targets growth-capital investments in small and medium-sized enterprises that are well-positioned in their local markets with the potential to scale up their activities beyond their own country’s borders and become “regional champions.” 

Three Standard Bank entities – Isle of Man, South Africa, and Mauritius – collaborated to close the latest transaction. With AfricInvest being one of the oldest and most experienced Africa private equity fund managers, it is well positioned to increasingly invest in geographies aligned to Standard Bank’s presence.

As an institution committed to the development of Africa and its people, Standard Bank’s provision of this facility is aligned with AfricInvest’s aim to accelerate regional growth by supporting the progress of proudly African mid-cap companies which have the potential to drive job creation across diverse sectors. 

The Fund’s latest investment in April 2022 saw it, alongside the International Finance Corporation, acquire a 36% stake in East African auto-parts giant, AutoXpress. 

“The facility provided by Standard Bank will be crucial in providing bridging liquidity for investments to be made by the fund in accordance with our investment guidelines” said Khalil Lakhoua, Partner at AfricInvest. 

“The facility will also go a long way toward easing the administrative burden for our investors, resulting from frequent capital calls,” he added.