NEOMA AFRICA FUND III, L.P.
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
The Abraaj Group, formerly Aureos Capital, has been successfully investing in Africa for over ten years. In 2003-2004 they launched their first generation of Africa-focused funds, with three small regional funds (East, West and Southern Africa) focusing on growth capital to SMEs. FMO invested in the Aureos East Africa Fund. In 2008, they launched their second generation fund, Aureos Africa, a much larger US$ 381 million fund that combined the knowledge and resources of the regional fund teams to invest in growth and buy-out capital for SME and mid-market companies. FMO also invested in this Aureos Africa Fund.
What is our funding objective?
Abraaj has now launched its third generation Africa-focused fund: Abraaj Africa Fund III. This fund is an extension of their regional foundation and focus, providing growth and buy-out capital to mid-sized businesses. The fund seeks to capitalize on Africa's growing domestic demand by focusing on the consumer goods and services, financial services and resource and infrastructure services sectors. The core geographies that the fund will seek to invest in will be Nigeria, Ghana, South Africa, Cote d'Ivoire and Kenya. FMO is investing US$ 40 million in this fund. The Fund has been closed at US$ 990m (announcement: 13th of April 2015).
Why do we fund this investment?
Abraaj is a top quartile performer with a long track record that proves their ability to successfully exit transactions. The fund expects to have a positive impact on job and wealth creation and tax payment through its investment focus on mid-market companies and creating regional champions. In addition to participating in the fund's first close, FMO also has an AC seat and plays an important environmental, social and governance (ESG) role by assisting Abraaj in continuously improving their ESG management systems. This will help them to adhering to the highest relevant benchmarks, such as the IFC Performance Standards.
- Website customer/investment
- http://www.abraaj.com/
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Effective date
- 12/30/2014
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A