A.P. Moller Holding, a privately held investments company with approximately $20bn under management has launched a new infrastructure fund with a focus on Africa. The fund has received commitments of $550m from large Danish pension fund anchor investors including PKA, PensionDanmark and Lægernes Pension. Following first commitments, the fund will be open for additional institutional investors for the next 12 months with the goal of raising $1bn. It will focus on investments in infrastructure in Africa to support sustainable economic growth in the region while delivering an attractive return to its investors. The fund will be managed by A.P. Moller Capital, and will have a duration of 10 years with an initial target of 10 to 15 investments in total. According to AfCD typical investments are expected to range between $50 million and $200 million in size, with priority being given for opportunities in ten African countries, Nigeria, South Africa, Ghana, Egypt, Kenya, Cote d’Ivoire, Tanzania, Morocco, Ethiopia and Senegal.
Commenting on the capital raised so far, Kim Fejfer, Managing Partner and CEO of A.P. Moller Capital explained:
“We are very pleased with the significant support from the Danish pension funds and A.P. Moller Holding. Together, we will build and operate infrastructure business in Africa to support sustainable development and improvements in living standards across the continent. We will combine the best from industry in terms of project management and operational capabilities with the best from private equity in terms of agility and focus…”
Peter Damgaard Jensen, CEO at PKA:
“PKA has for many years invested in infrastructure both in Denmark and abroad. We have positive experiences investing in Africa and we have for a long time wanted to invest more on the continent. With this new fund we will be making infrastructure investments in Africa and get the opportunity to provide a good return to the pension savers and at the same time make a positive difference in line with the UN Sustainable Development Goals.”
See how A.P. Moller Holding and Maesrk are related in this graphic.