Dangote Group, a Nigerian oil-to-cement production investment holding company, has joined forces with U.S. billionaire investors to support a new $500 million fund aimed at Africa. The Alterra Capital Partners fund, backed by prominent investors including Carlyle and others, aims to raise up to $500 million. They have already secured $140 million in their initial closing. In contrast to some larger investors withdrawing from the African market, smaller firms like Alterra see opportunities in sectors such as telecommunications, technology, logistics, healthcare, consumer services, and retail to address gaps in Africa's financial and logistical infrastructure.
The fund has also attracted investments from notable institutions such as Standard Bank Group Ltd., International Finance Corp., Norfund AS, Germany's Deutsche Investitions-und Entwicklungsgesellschaft GmbH, and Allianz SE's AfricaGrow fund. Alterra, with its experienced founding partners, has demonstrated an active and impactful presence in Africa's investment landscape, having invested around $1 billion in a total of twenty-three companies across the continent, successfully exiting six of them and returning $600 million to investors.