The successor vehicle of a developing country infrastructure fund has launched and is making its first investment.
A P Møller Capital has registered a vehicle as a successor to its Africa Infrastructure Fund I, which will invest in Africa in addition to South and Southeast Asia.
Emerging Markets Infrastructure Fund II will raise between $1 billion and $1.5 billion (between DKK7bn and DKK11bn).
IJGlobal reported on plans for the new fund in May (2022) and understands its investors are:
- A.P. Møller Holding
Emerging Markets Infrastructure Fund II is already in the process of making its first investment in logistics company CACC which is based in Cairo.
A subsidiary owned by one of A.P. Møller Capital's funds will buy CACC together with the Egyptian investment company HAU, which is owned by one of the largest privately-owned engineering and infrastructure companies in Egypt.
If approved, the investment in CACC will be the first investment in an integrated Egyptian logistics platform that the 2 groups will expand. The plan is to build more warehouse facilities and make additional investments in Egypt.
A. P. Moller’s first venture was the Africa Infrastructure Fund I – an unlisted fund focused on deals in the transport and energy sectors across 10 African countries: Nigeria, South Africa, Ghana, Egypt, Kenya, Cote d’Ivoire, Tanzania, Morocco, Ethiopia and Senegal.
It was launched on 9 August 2017 with a target of $1 billion and a $550 million seed investment from AP Moller Holding, PensionDanmark, PKA and Lægernes Pension.
It reached second closing on 20 February 2018 at $865 million and closed in August 2019 at $992 million.
Investments in the fund include:
- ARISE Ports & Logistics – ports and logistics ecosystem to facilitate and capture trade and enable industrial development in West Africa
- Cabeolica – renewable power generation in Cape Verde (Sub-Saharan Africa’s first utility scale wind farm)
- East Africa Infrastructure Platform – a gas conversion power platform
- Eranove – Ivory Coast power utility
- Impala Energy Holdings – gas powered platform supplying corporates in Nigeria
- KEG Holdings – Kenyan-based operator of largest liquefied petroleum gas (LPG) storage terminal in east Africa and associated LPG logistics and distribution
- Lumika Renewables – South Africa-based designer, builder, and financer of renewable energy for commercial and industrial customers in Africa
- Mass Céréales al Maghreb – logistics infrastructure for grain imports in Morocco and regional markets
A.P. Moller Capital is an affiliate of A.P. Moller Holding and part of the A.P. Moller Group, founded in 2017 to manage stand-alone funds focusing on infrastructure in growth markets.
Its investments support sustainable economic growth in the markets in which it operates while delivering “consistent and competitive” returns.
It pursues a value-add approach, using industrial and operational know-how with private equity competence and experience from investing and operating in emerging market infrastructure.
Describing its mission, the company says: ”Globalisation, urbanisation, and a growing global middle class, drive an ever-increasing demand for infrastructure investments. We invest in critical infrastructure in high growth markets where the infrastructure funding gap is most profound.”
A.P. Moller Capital is headquartered in Copenhagen and has a branch office in Dubai.