Ninety One has closed its third Africa Credit Opportunities Fund (ACO3) with $404 million in commitments, including leverage, from institutional investors across Africa, Europe, the UK, US and Canada.

The fund attracted capital from development finance institutions, pension funds and family offices, and is the third vehicle in Ninety One’s Emerging Market Senior Credit strategy.

ACO3 focuses primarily on senior secured private credit opportunities, providing financing to established businesses and infrastructure projects across Africa and other emerging markets. The strategy uses conservative financial leverage and structural protections to target risk-adjusted returns for investors.

The fund has already built a portfolio of more than 30 investments across Africa, Latin America, Asia and Central and Eastern Europe. Its exposure spans communications, consumer businesses, financial services, healthcare, industrials and materials, with several investments already exited.

Ninety One said demand for private credit across Africa and other emerging markets continues to be supported by financing gaps and favourable supply and demand dynamics compared with developed markets.

Nathaniel Micklem, Co-Head of Emerging Market Alternative Credit, said the fund close reflected continued investor interest in emerging market private credit.

“The successful close of Africa Credit Opportunities Fund 3 reflects investors' continued confidence in the attractive opportunities available in Africa and emerging markets private credit,” Micklem said.

He said the financing gap for businesses and infrastructure projects created opportunities for lenders with local origination capabilities. “Our long-standing presence, local expertise and partnerships position us to identify resilient investment opportunities that we believe can deliver compelling risk-adjusted returns while supporting sustainable economic growth,” he added.

The ACO3 Fund also incorporates Ninety One’s sustainability framework, with the strategy seeking to promote environmental and social characteristics alongside economic productivity.

Since inception, the Emerging Market Senior Credit strategy has raised $815 million across three funds and deployed more than $1.4 billion across more than 100 counterparties in over 30 countries, including recycled capital.

The fund is managed by Steven Loubser and Kobina (Kobi) Sam, Managing Directors within Ninety One’s Emerging Market Alternative Credit team. The pair have an 18-year track record of managing private and alternative credit funds across emerging markets.