African infrastructure investor Harith General Partners has launched a $200-million capital raise in a follow-up fund to its Pan African Infrastructure Development Fund (PAIDF) 2, that is open to existing and new investors.
The PAIDF 2 Infrastructure Top Up Fund is a shorter-term vehicle of between five and six years, that is being established to take advantage of near-term expansion opportunities in some of the best performing PAIDF 2 portfolio companies and realise a mature pipeline of high-quality infrastructure opportunities for investors.
The capital raised will be invested in existing PAIDF portfolio company expansion opportunities, as well as in selected key new pipeline deals and strategic infrastructure investment opportunities. These opportunities are both predetermined and existing.
Harith’s PAIDF 1 and PAIDF 2 portfolio companies include independent power provider Aldwych Holdings, South African telecommunications infrastructure group CIVH and undersea cable company and telecommunications services provider and network solutions for businesses in West Africa MainOne. They also include privately-owned international airport Lanseria International Airport and Zimbabwe-South Africa border post Beitbridge Border Post, besides others.
Since 2007, PAIDF 1 has recorded a 36% increase in the dollar amount invested, with a portfolio valuation of $742.9-million at December 31, 2020.
PAIDF 2 has recorded an 84% increase in the dollar amount invested and had a portfolio valuation of $471.8-million at December 31, 2020.
Harith CEO Sipho Makhubela says that rather than just investing in potential future projects, the company’s PAIDF 2 Top-Up Fund provides investors with immediate exposure to established assets that are generating returns.
“Our highly experienced management team has been together for more than a decade, making investments in some of the most difficult environments on the continent.”
It is for these reasons that Harith is “uniquely positioned” to capitalise upon the critical infrastructure requirements presented by the African Continental Free Trade Area, he adds.
The PAIDF 2 Infrastructure Top-Up Fund will further invest in up to eight core strategic transactions that will strengthen capacity to leverage large-scale future projects and enable Harith to scale up its existing position in some of the best portfolio companies in the PAIDF portfolios, says Makhubela.