Harith General Partners has concluded the acquisition of Frontier Markets Fund Managers Limited (FMFML) from its shareholders, Standard Bank Group Limited (SBG), Nederlandse Financierings"Maatschappij voor Ontwikkelingslanden N.V. (FMO) and EMP (Africa), L.L.C. for an undisclosed sum.
The transaction was subject to the consent of the two debt funds which FMFML exclusively manages, the Emerging Africa Infrastructure Fund Limited (EAIF) and GuarantCo Limited. Both funds offer innovative debt products to selected emerging markets with an Africa focus and have a strong track record of financing infrastructure projects across a range of sectors. FMFML has successfully managed the US1.2 billion funds since its establishment in January 2002.
EAIF has provided long term debt or mezzanine finance to support the construction and development of private infrastructure to over 50 projects across sub"Saharan Africa. GuarantCo provides guarantees for local currency financing for infrastructure projects and operates in and around the developing world.
FMFML will seek to leverage off Harith's strategic relationships, expertise and complementary product offerings to support the objectives and vision of the Company and the Funds. Harith's acquisition of FMFML may better position FMFML to develop to its full potential in a focused fund management operation with an African focus and will provide a further platform for Harith's growth ambitions.
Harith said the management team of FMFML will remain in place and the business will keep operating under its FMFML brand. Now Harith will be able to offer debt and equity products, leaving it as "one"stop service" for infrastructure finance and funding in Africa.
Harith already manages two equity funds: the US $630-million Pan African Infrastructure Development Fund (PAIDF) and the US$250 million ARM-Harith Infrastructure Fund (ARMHIF).