Vital Capital Investments Planning New $500M Fund For African Investments

Jun 25 2015 | 4:14pm ET

Vital Capital Investments is planning to launch a $500 million investment fund that will invest in African companies.

The new fund, named Vital Capital Fund II, will make as many as 20 investments in industries such as agriculture, water, education, affordable housing, healthcare and clean-energy, according to a Bloomberg article. It would be Vital’s second Africa-focused fund. 

Vital is reportedly weighing opportunities in Mozambique, Tanzania, Rwanda, Angola, Ethiopia, Uganda, Cameroon, Ghana and the Ivory Coast, according to managing partner Eytan Stibbe, who was quoted in Bloomberg’s Sub-Saharan Africa Brief

“People consider those areas that we’re active in as higher risk and there are less entities involved,” Stibbe said in the interview. “It’s more difficult to attract foreign, western sources of money to these sectors to do affordable housing in rural, even urban Africa. We found that as a big need, so we decided to create Vital as a platform for Western money to be invested in Africa.”

Interest in Africa among buyout firms has risen in recent years. Capital to invest in companies on the continent reached raised $4.1 billion in 2014, 24% more than a year ago, according to Ernst & Young’s Private Equity Roundup for Africa 2015 report. TPG Capital, Satya Capital, and Abraaj Group are among the funds that have raised capital for such efforts. 

Vital’s new fund will have a hard cap of $700 million and is expected to have a first close by the end of this year, according to Bloomberg. In addition to institutional investors, Vital is also speaking with development finance organizations such as the Africa Development Bank and the Overseas Private Investment Corp.

Zürich-based Vital Capital was founded by Stibbe in 2011. It closed its first fund in July 2012 with $350 million of a $500 million target, approximately 68% of which has been deployed across 12 projects to date.


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