CAPE III is being sponsored by African Capital Alliance Limited (‘ACA’ or ‘Sponsor’) to make privately negotiated equity and equity-linked investments. With a target size of $350 million, it will invest in companies with businesses located principally in countries in West Africa including the Gulf of Guinea (“the Region”).  In May 2009 CAPE III achieved a first close of $190 million.

The Fund is focused on high growth opportunities and regional play possibilities in Nigeria and across the Region. As Sub-Saharan Africa’s second largest and one with significant growth potential, Nigeria will continue to be ACA’s core area of focus.

The fund size is underpinned by a growing and reforming economy, and a higher focus on energy than in previous funds sponsored by ACA. The Sponsor has decided to focus up to 40% of the total fund size on investments in the energy sector. Other high potential sectors are financial services, other services, logistics, telecommunications and information technology. Furthermore, the Sponsor will commit up to 10% of the total fund size to commercially viable venture opportunities.

CAPE III will typically make investments in the range of $10 to $50 million with a target minimum gross internal rate of return (IRR) of 30%.  CAPE III will typically hold each investment between three to seven years.  The investments will be structured with on-going liquidity with CAPE III holding a majority interest or significant minority interest with strong governance rights in the respective companies.