CDC Invests $100 Million Into New African Fund Planned By Helios

LAGOS (Capital Markets in Africa) — The U.K.’s development-finance arm CDC Group committed $100 million to a $1.25 billion Africa-focused private-equity fund planned by Helios Investment Partners LLP.

CDC will also look for co-investment opportunities with Helios, Clarisa De Franco, the head of the London-based firm’s African funds in an e-mail. The investment, which will come from $1.5 billion the CDC has set aside this year for Africa and Asia, could be a catalyst for commitments from institutional investors, she said.

The fund, which would the largest yet raised by Helios, comes as businesses across the world’s poorest continent struggle to cope with restrictions aimed at containing the coronavirus.
“We expect this investment to generate significant impact across the continent by providing the capital needed to strengthen Africa’s private sector,” De Franco said.

The investment firms have similar portfolios. CDC owns 10% of Africa’s largest fiber company, Liquid Telecom Ltd., while Helios has backed telecommunications and infrastructure companies such as Telkom Kenya Ltd. and Helios Towers Plc on the continent.

London-based Helios, which manages about $3.6 billion, closed a $1.1 billion Africa-focused fund in 2015, more than it initially targeted.

Source: Bloomberg Business News