London-based ARCH Financial Products has launched a sub-Saharan Africa fund to capitalize on the increasing strength of the African market.
 
The ARCH Africa Private Markets Focus IC Fund debuted last quarter with seed capital of US$12 million, and has returned 2.75% to date. The fund, which targets an annual return of 20%, invests in the infrastructure, natural resources, agri-business and real estate sectors.
 
ARCH is working with local strategic partners to identify debt and equity investment opportunities. This is the third Africa-focused fund that ARCH has launched and takes its current commitment in the region to US$25 million.  It follows the Africa Invest IC and Africa Protect IC funds, which specialize in African agri-business.
 
The new fund combines private equity investments with private finance strategies with an emphasis on investing across the “value chain” such as natural resource extraction combined with power plants and railway infrastructure.

“This is an excellent time to be investing in Africa and our experience in the region means we are well placed to take advantage,” said Silash Ruparell, a partner at ARCH. “The whole continent is becoming more robust in terms of political and financial stability, with economies growing and inflation falling across the region.”

Robin Farrell established ARCH in 2002 and currently serves as its chief executive officer. Prior to ARCH, Farrell was a consultant to Goldman Sachs International and global head of the alternative investments group at Dresdner Kleinwort Wasserstein.