STANLIB gears funds to Africa
STANLIB will invest in equity stakes in private sector developed infrastructure projects through its Infrastructure Fund. This forms part of the African asset manager’s long term strategy to deepen its alternative investment offering across the continent. The Fund will invest in sectors requiring third party capital and specifically projects presenting an attractive combination of risk and return. STANLIB is continuing to boost its alternative investment capabilities, in line with its strategy, says its Chief Executive Officer, Seelan Gobalsamy.
The Infrastructure Fund is the asset manager’s first foray into infrastructure and private equity and has now achieved its final close at N$1.2 billion. The majority of the N$1.2 billion. in the 10 year closed-ended Fund will be channelled into South African infrastructure projects under development, with the remainder to be invested across Sub Saharan Africa. A second fund, focussing on post-construction and operational infrastructure assets, is also under development. “As we expand across Africa, we would like to focus on alternative assets and transactions that can make a real difference in South Africa and the continent. We have identified infrastructure as an area where we can have a great impact as infrastructure gaps are consistently cited as one of the biggest challenges to doing business in Africa. Through our investments we aim to create employment and help grow the economies we operate in”, said Gobalsamy. “If you believe the fundamentals about the dire need for infrastructure in South Africa and Sub-Saharan Africa and the funding constraints in the public sector, private sector investment in public sector infrastructure is a given. We provide that platform and believe that alternative investments will be playing an increasing role in most Institutional investments portfolios. This is an example of one such alternative investment opportunity that will ultimately benefit our country over the long-term. For us, this is just the beginning”, said Greg Babaya, Head of the STANLIB Infrastructure Investments Franchise. “We believe our industry can ultimately make a difference, and this Fund is an example of that. Through it, our aim is to channel private sector capital into projects that will have a marked impact on our country and be a conduit for future growth and prosperity in Africa”, said Gobalsamy. STANLIB closed fund-raising after successfully raising over N$1 billion in total commitments. Approximately N$800 million was raised from local Institutional investors since its first close in May 2013. STANLIB has already made investments accounting for more than half its Fund total commitments.