New UK fund homes in on African sovereign and corporate debt

A London-based investment manager with a Sigma instead of an Epsilon for a logo, Enko Capital this week announced the launch of its Enko Africa Debt Fund, with an initial US$200 million in assets under management.

Alain Nkontchou, Managing Partner of Enko Capital said, “We are pleased to broaden our Africa-focused investment strategies to include a new debt fund which will give our investors an opportunity to capture value embedded within the African fixed income landscape. The launch of the debt fund leads Enko Capital Group closer to its ambition of becoming the leading pan-African asset manager.”

Enko stated that the new fund will invest in both hard currency and local currency African debt instruments.

Enko Capital targets investments across Africa through three distinct platforms: Private Equity; Listed Equity and Fixed Income.

Under its Fixed Income leg, Namibian debt instruments listed in Windhoek and Johannesburg are prime investment opportunities.

“The Enko Africa Debt Fund will invest solely in fixed income securities issued by corporates and sovereigns, denominated in local and hard currencies across Africa” Enko said.

The fund’s strategy is to provide non-African investors exposure to Africa’s relatively high fixed income yields.

Enko Capital Group currently manages the Enko Opportunity Growth Fund (EOGF) and the Enko Africa Private Equity Fund (EAPF).

The EAPEF is a private equity fund focusing on mid-tier companies that are suitable for listing on local stock exchanges within a few years from investment.

The EOGF is an open-ended fund designed to provide investors with exposure to the best growth opportunities offered within African equity markets.

Enko stated it runs offices in London and Johannesburg and is regulated by the Financial Conduct Authority in the UK and the Financial Services Board in South Africa.