CDC Group commits $50m to African Capital Alliance’s PE Fund III (CAPE III)

CDC Group, the UK government-backed, emerging-markets fund of funds, has committed $50m to African Capital Alliance’s Private Equity Fund III (CAPE III) as part of its new focus on investing in the world’s poorest countries.

CAPE III targets to make minority and majority investments between $30m and $50m in mid-sized Nigerian companies with growth potential. About 25 per cent of investments will also be in other West African countries and the Gulf of Guinea region.

The fund will back companies that operate in industries which will benefit from regulatory changes in Nigeria, such as electric power. Around half of Nigeria’s population does not have access to electricity, but recent reform in the sector is said to be providing an opening for new entrants to the market.