AllianzGI and KfW launch fund of funds AfricaGrow
Allianz Global Investors has teamed up with the German development bank KfW to launch a fund of funds designed to provide financial resources for African private equity and venture capital funds.
The new venture, called AfricaGrow, is designed to fund 150 small- and medium-sized enterprises and start-ups in reform-orientated African countries through local funds by 2030.
The fund has launched with an initial €170 million in assets, which is with €85 million from Germany’s Federal Ministry for Economic Cooperation (BMZ) and Development, €30 million from a subsidiary of KfW, and between €55 million and €70 million from Allianz. The German Federal Government is also providing capital for support measures.
Allianz Global Investors will act as lead manager on the Germany-based fund, which will aim to provide 25,000 new jobs by 2030. The lead manager on the strategy is Martin Ewald, who is lead portfolio manager for impact investments.
To date, Allianz has primarily financed infrastructure projects in emerging economies, including up to $500 million (€451 million) in a co-lending program with the World Bank Group, and approximately €90.2 million ($100 million) in Africa.
