Africa’s richest man – Aliko Dangote is partnering with two US billionaires for the Alterra Capital Partners fund, a new Africa-focused initiative poised to make waves in the investment landscape.
The two Americans – David Rubenstein and Bill Conway, co-founders of the U.S.-based multinational private equity firm Carlyle Group, form part of other groups that have shown interest in developing a platform which consolidate all African companies generating a majority of their revenues in the U.S. dollar.
Other notable investors in the Alterra Capital Partners fund include Standard Bank Group Ltd., International Finance Corp., Norfund AS, Germany’s Deutsche Investitions- und Entwicklungsgesellschaft GmbH, and Allianz SE’s AfricaGrow fund.
With $140 million secured in its first closing, the team aims to raise up to $500 million in the coming months, signaling a strong commitment to Africa’s economic potential.
The $500 million fund will be used to build a diversified portfolio, with a key focus on African companies generating the majority of their revenue in U.S. dollars.
The Alterra Capital Partners team, boasting more than 100 years of combined private equity experience and having previously invested more than $2 billion in 23 companies across Africa, is spearheading this ambitious venture.
It is a significant move that will give investors a safeguard against currency depreciation trends seen on the continent.
“This is an excellent time to put money to work in Africa as many of the current macro themes provide attractive potential investment opportunities. For example, the power challenges across Africa provide opportunities to invest in private distributed power solutions, while technology continues to drive Africa’s digital transformation at a rapid pace,” said Genevieve Sangudi, a partner at Alterra Capital Partners.
According to Billionaires Africa, Alterra Capital Partners was established through the merger of seasoned professionals from two of Africa’s most experienced investment managers, Carlyle Africa and Emerging Capital Partners.
This strategic combination was driven by their longstanding working relationship, complementary investment strategies, extensive geographic footprints, and a shared vision for unlocking Africa’s investment potential.