UK-based Enko Capital has closed more than $1.3 billion in private equity and public debt investments in Africa since 2008. The firm is in the market with its first private credit fund to support mid-sized businesses in agriculture, manufacturing, renewable energy and other core economic sectors. The fund will focus on businesses that can take on or need dollar-denominated lines of credit, such as companies with customer contracts in dollars or which export their products.
Enko reached a $100 million first close from the International Finance Corp., British International Investment, SICOM Global Fund, as well as an undisclosed European impact investor, family offices and African pension funds. It is looking to raise $150 million to $200 million.
Debt risks
The collapse of auto parts maker First Brands triggered worries on Wall Street about the private credit market. In emerging markets, investors have flocked to private debt opportunities amid a prolonged downturn in equity financing. Demand for debt in emerging markets still far outpaces the capital available, and deals tend to be underwritten conservatively. Data has shown emerging markets debt to be a relatively low-risk asset class.
Earlier this month, asset management firm Janus Henderson raised $125.5 million for its fourth private credit fund for small businesses in the Middle East and North Africa. The fund, which provides financing that complies with the principles of Islamic finance, was backed by SIDF Investment Company and the Saudi Venture Capital Company in Saudi Arabia, and Abu Dhabi Catalyst Partners in the United Arab Emirates.
