African Infrastructure Investment Managers (AIIM) has announced the final close of its pan-African infrastructure fund, AIIF3, which raised $320m from a diverse investor base across Africa, Europe and Asia.

Paul Frankish, Head of Strategic Initiatives at AIIM, said: “Africa-focused alternatives funds have concluded fundraisings of $2.5bn, on average, per year over the last five years with final closes for Africa-focused infrastructure funds over this period averaging $233m. The success of AIIM’s fundraising against this backdrop demonstrates the confidence our deeply experienced investors feel in both our team and the potential of Africa.”

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, 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 an Environmental, Social and Governance (ESG) strategy.

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 developed 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 a high quality, diverse and global investor base demonstrating the ongoing attractiveness of Africa as an investment destination.

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. Five of the assets in the AIIF3 portfolio are already operational and delivering against their original investment thesis.  

Jurie Swart, CEO of AIIM, said: “This fund epitomises AIIM’s broader investment thesis of building out domestic infrastructure in Africa and driving sustainable economic growth across the region. We are delighted that our investors share our vision for the African infrastructure opportunity and we are grateful to them for placing their trust in our proposition.”