AfricInvest Fund III has acquired a significant minority interest position (over 35%) in Salvador Caetano Auto Africa, the holding company of the Group dedicated to auto distribution and retail business in Africa.

Hakim Khelifa, Senior Partner at AfricInvest, said: “AfricInvest has invested in the African holding where 100% of the revenues are derived from Africa and is not involved in the rest of the business.”

“AfricInvest Fund III has started investing less than a year ago and is expected to be fully invested in about three years from now,” he told Africa Global Funds.

AfricInvest, a pan-African mid-cap-focused private equity firm, will have standard minority protection rights including a board seat.

Khelifa will be representing AfricInvest on the Board of Salvador Caetano Auto Africa.

“AfricInvest is excited to be partnering with one of the leading European auto groups with nearly 70 years of experience in the automotive sector, including more than 20 years of experience in Africa, as it establishes even stronger market positions across the continent,” he said.

Salvador Caetano Africa’s activities are focused on auto distribution and retail in markets with significant growth potential.

Through its investment, AfricInvest is taking advantage of an opportunity to help consolidate SC Africa’s position in current markets and brands as well as to capture a higher share of the significant growth expected in the auto retail sector across African markets.

AfricInvest will also look to use its deep ties with African financial institutions to explore opportunities to provide auto financing and leasing opportunities for SC Africa’s customers.

Miguel Ramos, CEO of Salvador Caetano Group, said this partnership will not only allow SC Africa to leverage its investment and footprint in Africa, but will also take advantage of Africinvest’s long experience and knowledge of the African markets.

“We really believe in the commitment and added value that Africinvest will bring to our business,” he said.

AfricInvest Fund III aims to make up to 20 equity and near-equity investments in SMEs and small midcaps in Africa, with no specific sector focus.

The Fund intends to invest between €5m and €15m into companies well established in their local market, which have the potential, following the capital injection, to scale up their activities and grow up as "regional champions".

The Fund mainly targets companies that are generating revenues between €10m and €70m with growth potential, without however excluding early stage companies and start-ups which may be targeted jointly with established co-investors active in that field.