Top-up fund provides exposure to Africa’s growth accelerated by the African Continental Free Trade Area
Harith General Partners, one of the largest investors in African Infrastructure, has announced a US$200 million capital raise in a follow-up fund to its Pan African Infrastructure Development Fund (PAIDF) 2, that is open to existing and new investors.
The PAIDF 2 Infrastructure Top Up Fund is a shorter term vehicle (5-to-6 years) that is being established to take advantage of very near-term expansion opportunities in some of the best performing PAIDF 2 portfolio companies and realise a mature pipeline of high-quality infrastructure opportunities for investors.
Harith’s PAIDF 1 & PAIDF 2 portfolio companies include Aldwych Holdings Limited (Now Anergi), one of the largest Independent Power Provider’s on the continent; leading South African telecommunications infrastructure group CIVH; MainOne, an undersea cable company and leading provider of innovative telecom services and network solutions for businesses in West; Lanseria International Airport, South Africa’s only privately owned international airport; the busiest border post in Southern Africa, Beitbridge Border Post, among others.
The capital raised will be invested in existing PAIDF portfolio company expansion opportunities as well as in selected key new pipeline deals and strategic infrastructure investment opportunities. These opportunities are both pre-determined and existing.
Since 2007, PAIDF 1 has recorded a 36% increase in the USD amount invested. The fund had a Portfolio Valuation of US$742,9 million at 31 December 2020. PAIDF 2 has recorded an 84% increase in the USD amount invested and had a portfolio valuation of US$471,8 million at 31 December 2020.
Sipho Makhubela, CEO Harith General Partners said: “Rather than just investing in potential future projects, our PAIDF 2 Top-Up Fund provides investors with immediate exposure to established, world-class assets that are generating returns today and an experienced management team that has been together for more than a decade, making investments in some of the most difficult environments on the continent.
Harith is therefore uniquely positioned to capitalise upon the critical infrastructure requirements presented by the African Continental Free Trade Area (AfCFTA). The PAIDF 2 Top-Up fund will further invest in up to eight core strategic transactions that will strengthen capacity to leverage large-scale future projects and allow Harith to scale up its existing position in some of the best portfolio companies in the PAIDF Portfolios.”
Note to editors
Harith General Partners is one of the largest investors in African Infrastructure, with a long track record of value creation across the continent in the five core infrastructure sectors of energy, transport, telecommunications, health and water. Led by CEO Sipho Makhubela, Harith’s experienced fund management team has been working together for more than a decade.
Harith has combined Assets Under Management (AUM) in excess of USD 1,2 billion from its management of two private equity infrastructure funds, the Pan African Infrastructure Development Fund (PAIDF) 1 and 2.
Additionally, Harith also manages three infrastructure mandates through two Joint Ventures (JVs), the ARM Harith Infrastructure Fund (ARMHIF) in Nigeria (US$64.8m 12-year fund) and in Namibia the Namibia Infrastructure Fund (NIF) 1 (N$280 million) and NIF 2 (N$500 million).
Fund key terms
- Name of the Fund: PAIDF 2 Top-Up Fund (the Fund)
- Size of the Fund: USD 200 million
- Instrument: Equity commitment
- Implementation date: June 2021
- Purpose: Investing in expansion of world-class Infrastructure assets already managed by Harith, and selected new greenfield Infrastructure Projects
- Targeted IRR: 15%
- Investment Period: 18 months
- Minimum Investment Size: USD 10 million
- Term: 5 (plus 1 year extension option)
- Carried Interest: Standard Carry over an agreed hurdle rate