Ninety One announces $260m close of latest Africa credit fund
Ninety One has announced the first close of its third Africa and emerging markets focused credit opportunities strategy, with $260m (£206.6m) committed.
The ACO Fund 3 has been backed by the International Finance Corporation (IFC), British International Investment, and the Swiss Investment Fund for Emerging Markets (SIFEM). Standard Bank of South Africa is the credit provider.
The fund aims to make private credit investments in market-leading companies and infrastructure entities in Africa and other emerging markets, while delivering “competitive” returns.
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“Along with our partners, we are very excited to be launching our 19th emerging markets private credit fund,” said Nathaniel Micklem, co-head of Ninety One Emerging Market Alternative Credit.
“The strategy has a long history of supporting growth and infrastructure companies across Africa and other emerging markets.
“The ACO strategy has demonstrated the ability to generate stable real returns, outperforming the public and private credit benchmarks after costs, whilst developing the capital markets in which it operates.”
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“This milestone marks a significant step in our commitment to fostering private sector-led growth and job creation across Sub-Saharan Africa,” added Kalina B. Miller, IFC’s financial institutions group regional industry manager for Southern Africa.
“By investing in market-leading companies and vital infrastructure, we aim to enhance access to finance, bridge infrastructure gaps, and improve the overall investment climate.
“Together, we can unlock the potential of high value-adding sectors and drive sustainable development in the region.”
Ninety One’s ACO strategy celebrates its 10th anniversary this year. Since inception, the strategy has raised almost $700m in committed capital across three fund vintages and made more than $1.2bn in investments across 82 counterparties in more than 20 countries.
Almost half of these investments have been made in infrastructure and telecoms.
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