One of Africa’s largest infrastructure investors, Harith General Partners, has announced a US$200 million (R2.9bn) capital raise to invest in high-performing, world class infrastructure assets on the African continent. This is a follow-up fund to its Pan African Infrastructure Development Fund (PAIDF) 2 and will be deployed into existing assets to supply both additional capital, or increase the fund’s shareholding in them.
Harith says the PAIDF 2 Infrastructure Top Up Fund is a shorter term vehicle (5-to-6 years) and will take advantage of very near-term expansion opportunities in “some of the best performing PAIDF 2 portfolio companies.” The fund will also realise a mature pipeline of high-quality infrastructure opportunities for investors.
Harith’s PAIDF 1 & PAIDF 2 portfolio companies include Aldwych Holdings Limited, one of the largest Independent Power Providers on the continent. Lanseria International Airport, South Africa’s only privately owned international airport is also one of the companies on the portfolio. Among other companies, the funds recently added the Beitbridge Border Post, the busiest border post in Southern Africa on the portfolio.
Harith invests in telecommunications infrastructure, power, transport, and will also invest in selected new greenfield Infrastructure Projects. The new fund will invest in selected key new pipeline deals and strategic world class infrastructure projects. These opportunities are both pre-determined and existing.
Since 2007, PAIDF 1 has recorded a 36% increase in the USD amount invested. The fund had a Portfolio Valuation of US$742,9 million at 31 December 2020. PAIDF 2 has recorded an 84% increase in the USD amount invested and had a portfolio valuation of US$471,8 million at 31 December 2020.
Sipho Makhubela, CEO Harith General Partners said: “Rather than just investing in potential future projects, our PAIDF 2 Top-Up Fund provides investors with immediate exposure to established, world-class assets that are generating returns today and an experienced management team that has been together for more than a decade, making investments in some of the most difficult environments on the continent.
Harith says it is uniquely positioned to capitalise upon the critical infrastructure requirements presented by the African Continental Free Trade Area (AfCFTA). “The PAIDF 2 Top-Up fund will further invest in up to eight core strategic transactions that will strengthen capacity to leverage large-scale future projects and allow Harith to scale up its existing position in some of the best portfolio companies in the PAIDF Portfolios.”