BEI/10/54
29 March 2010
28 million USD Closing for First Private Equity Fund Targeting Small and Medium Sized Enterprises in Angola – European Investment Bank to provide 6 million USD for fund
Fundo de Investimento Privado Angola (FIPA) is the first Private Equity (PE) fund of its kind. The fund manager is optimistic about the prospects of investing in Angola, one of the world’s fastest growing economies over the last few years. The first closing of FIPA represents a milestone for the development of the capital market in Angola. By linking local capital markets with international sources of finance, the 28 Million USD fund will target small and medium sized privately owned businesses (SMEs).
EIB Vice-President Plutarchos Sakellaris, responsible for Africa, Caribbean and the Pacific, said: "We are pleased to work closely with FIPA to enhance equity finance available for Angolan small and medium sized companies, a crucial issue for companies across Africa. We welcome FIPA's significant contribution to Angola's economic development and long-term recovery."
Tiago Laranjeiro, Managing Director of Angola Capital Partners LLC is optimistic about the prospects of investing in Angola, one of the world’s fastest growing economies over the last few years. He states that having successfully raised the first closing commitments is remarkable in light of the current financial climate. The potential within the SME sector in Angola is significant. “We see plenty of potential within our pipeline companies and the economy in general. Sectors outside the dominant petroleum sector are in special need for growth and expansion capital” says Laranjeiro. “Our second closing, to be completed by year-end 2010, will aim to raise FIPA’s capital up to 100 Million USD, so that we can fully capture the good investment opportunities we have at hand” he concludes.
Norfund has initiated the fund together with the local partner Banco Africano de Investimentos (BAI). Kjell Roland, CEO of Norfund, emphasizes how having a local partner is key to the success of the project. “We believe this is the time for private and institutional investors to start looking beyond traditional markets” says Roland. “There are many good entrepreneurs in Angola. They are in need of strong financial partners that, in addition to financial capital, can provide long term partnership and support. We find similar demand across the continent and hope the story of FIPA can spark the interest of other investors in the African markets.”
Jose Massano, CEO of Banco Africano de Investimentos, says that FIPA has an important role to play in the Bank’s mission to provide funding to the Angolan economy and to contribute to the development and growth of the country. “FIPA, as a provider of private equity capital, is highly complementary to the business areas of the bank” he says.
Kim Gredsted, Head of the Regional Office in Johannesburg for Danish International Investment Funds (IFU) pointed out the importance of having an investment fund with a team on the ground in Angola, which will now effectively serve this market with private equity financing, something that has been mostly missing until the present. “By filling in this gap, FIPA can be seen as a step in the right direction of making the financial system of Angola more complete. This is groundbreaking, and the role of IFU, as a DFI, is to be in the forefront of such projects” says Kim Gredsted. “Our investment in FIPA has enhanced IFU’s presence in one of the more challenging but also very promising markets in Africa. We can now pursue investment opportunities with Danish strategic partners and in many cases bring FIPA as a local financial partner and thereby have a permanent team on the ground that will help manage the investment and mitigate the various risks that are associated with private equity investments in Angola.”
The investors in FIPA are: the European Investment Bank (EIB), Danish International Investment Funds (IFU), Banco Privado Atlântico (BPA), Banco Africano de Investimentos (BAI) and Norfund.
Press contacts:
For more information, please contact:
EIB: Richard Willis, Press Officer, tel: +352 437982155, willis@eib.org, www.eib.org
Norfund: Ella Mæhlumshagen, communication advisor, tel: + 47 92 68 28 18; or Tone Dalen; +47 97082572
Background information:
About the European Investment Bank: The European Investment Bank is the long-term lending institution of the European Union, whose shareholders are the 27 European Union member states, has been active across Africa for over 40 years. EIB activities follow policies and objectives set down by European Union member states and whose Finance Ministers are the EIB’s Governors. EIB loans in Africa concentrate on fostering private sector-led initiatives, including SME and microfinance investments that promote sustainable economic growth and help to reduce poverty. The Bank also supports public sector projects that are critical for private sector development and the creation of a competitive business environment. www.eib.org
About BAI: Founded on 14th November 1996, BAI is today a dynamic bank using the most up-to-date technology. We give special attention to a more efficient and personalized market approach and we strive to become an essential partner in your business. As the largest Angolan bank, we are actively engaged in providing an attentive service to Individual Customers and offering innovating solutions to support SMEs (Small and Medium Enterprises) while keeping ourselves as an undeniable reference among Corporate Organizations. A team of dedicated and expert professionals ensures our presence throughout the national market as well as representation in the international market. With over 70 branches in Angola, BAI is also present in Portugal, through BAI Europa, in Cabo Verde, through BAI Cabo Verde, S. Tomé e Príncipe and Brazil through partnerships that ensure BAI businesses. www.bancobai.ao
About BPA: Banco Privado Atlântico is committed to being a model company in the Angolan financial market. We aspire to uphold the outmost respect throughout the world for the excellence of our services to our customers, for the creation of wealth to our shareholders, for our consideration towards the life and career of our employees, and for our sense of corporate social responsibility, focused on ensuring sustained economic development as means to create internal wealth. www.bpa.ao
About IFU: Danish International Investment Funds (IFU) was founded by law in 1967. The objective of IFU is to promote economic activity in developing countries in collaboration with Danish trade and industry. IFU works to achieve it's objective by investing in companies in such countries in collaboration with Danish strategic partners. www.ifu.dk
About Norfund: The Norwegian Investment Fund for Developing Countries – Norfund – was created by the Storting (parliament) in 1997. Norfund’s vision is to combat poverty through investments in profitable and sustainable businesses in developing countries. Norfund is a hybrid state-owned company established by law with limited liability, owned on behalf of the state by the Ministry of Foreign Affairs with Erik Solheim as the minister with constitutional responsibility. Its activities are conducted in accordance with the fundamental principles for Norwegian development cooperation. www.norfund.no
About FIPA: Fundo de Investimento Privado Angola (FIPA) is managed by Angola Capital Partners LLC with its team on the ground in Luanda, Angola. Please send an email to contacto@angolacapitalpartners.com or see www.angolacapitalpartners.com for more information.
About Angola: http://www.investinangola.com/eng_home.asp
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