Capitalworks, a South African private equity firm, has launched Africa Capitalworks, an investment company that will deploy permanent equity capital in mid-market companies in selected sectors across sub-Saharan Africa, excluding South Africa. 

Africa Capitalworks aims to raise $300m and has already secured support and investment from the CDC and the Public Investment Corporation.

“Both CDC and PIC recognise the significant imbalance between the supply of and demand for long-term capital in the rapidly growing and developing sub-Saharan African economies and the midmarket companies within them and share Africa Capitalworks’ thesis that longer-term capital is one of the best ways to address this imbalance,” Capitalworks said in a statement.

In addition, the firm has announced plans to launch Sephira Investment Advisors, a London-based business to provide financial and operational support for hedge funds, according to Reuters.

Regulatory filings in the UK showed two funds registered to Sephira Investment Advisors, comprising Sephira GEM Equity and Sephira EM Asia Equity.

Capitalworks will provide a regulatory platform for the funds, help fundraise, particularly in South Africa, and inject some cash from its underlying investors, many of whom are South African.

A spokeswoman at Capitalworks declined to comment.

Headquartered in Johannesburg, Capitalworks is an independent alternative asset management firm providing access and specialist solutions across a wide range of industries and investment themes in sub-Saharan Africa.