Carlyle Founders and Billionaire Dangote Support New Africa-Focused PE Fund
A team that spun out of Carlyle Group Inc. has secured backing from Carlyle co-founders David Rubenstein and Bill Conway, as well as Nigerian billionaire Aliko Dangote, for a new Africa-focused private equity fund called Alterra Capital Partners. The fund aims to raise up to $500 million, with $140 million already secured in its first closing. Alterra plans to invest in sectors such as telecommunications, technology, logistics, healthcare, consumer, and retail. The team behind Alterra has already invested about $1 billion in 23 companies in Africa, with successful exits including J&J Group, Assala Energy Holdings, Tessara Ltd., and Global Credit Rating Co. The new fund will target hard currency-denominated investments to mitigate currency risk. Alterra will face competition from other Africa-focused firms such as Helios Investment Partners and Adenia Partners.
Implications of New Africa-Focused PE Fund for Emerging Businesses
The creation of Alterra Capital Partners, a new Africa-focused private equity fund, backed by Carlyle co-founders and Nigerian billionaire Aliko Dangote, presents a significant development for new businesses in Africa.
Alterra's plan to invest in sectors like telecommunications, technology, logistics, healthcare, consumer, and retail signals a surge in investment opportunities for startups and emerging businesses in these sectors. This could spur innovation and growth, fostering a robust entrepreneurial ecosystem in Africa.
The substantial financial backing from prominent figures like the Carlyle co-founders and Dangote lends credibility and financial stability to the fund. This could reassure new businesses seeking investment, providing them with the confidence to innovate and expand.
Competition and Market Dynamics
While Alterra will face competition from other Africa-focused firms, this competitive landscape could benefit new businesses. Increased competition among investment firms could lead to better deal terms for businesses seeking investment. Furthermore, the focus on hard currency-denominated investments could provide a buffer against currency risk for these businesses.
In conclusion, the launch of Alterra Capital Partners could have far-reaching implications for new businesses in Africa, presenting new opportunities for growth and investment.