African Infrastructure Investment Managers (AIIM) has reached the financial close of its flagship pan-African infrastructure fund, AIIF3, which raised US$320 million from a diverse investor base across Africa, Europe, and Asia. Since inception, AIIM has raised cumulative commitments of US$2.2 billion over 7 funds and executed more than 56 transactions in target pan-African markets.
With a focus on diversification and predictable cash flows, AIIF3 targets significant influence investments across the power, transport, and midstream energy sectors in Sub-Saharan Africa - areas with the biggest disconnect between demand for critical infrastructure and supply of available capital. The Fund focuses on mid-market opportunities in these sectors, space which is less competitive and carries less execution risk than the larger marque deals; gaining exposure to opportunities in countries with high growth prospects but lacking the scale to support mega deals.
A key priority for AIIF3 is also the continued implementation of a rigorous and ambitious Environmental, Social and Governance (ESG) strategy as part of its responsibility to all stakeholders including the communities in which it operates. AIIM has fully integrated the Fund’s Social and Environmental Management System (SEMS) into the investment process for every single investment the Fund makes and develop a robust measurement system aligned to the UN Sustainable Development Goals which tracks the performance of key impact metrics.
Limited Partners in AIIF3 include existing AIIF2 investors as well as new commitments from high quality, diverse and global investor base demonstrating the ongoing attractiveness of Africa as an investment destination. The support from existing investors and the trust that non-AIIF2 investors have placed in AIIM in making their first pan-African allocations through AIIF3 is a strong show of support for AIIM’s strategy and track record.
AIIM’s on-the-ground team has already established a diversified portfolio of assets for the Fund with nine investments concluded across the thermal power, renewable energy, ports & logistics, and airports sectors; gaining exposure to operations across 12 African countries. Supported by the focus on mid-market deals with shorter construction periods, five of the assets in the AIIF3 portfolio are already operational and delivering against their original investment thesis.