Nigerian investor Okey Enelamah’s African Capital Alliance targets $750 million fund

Okey Enelamah, founder and chairman of African Capital Alliance, is looking to build on more than two decades of investment activity through a new private equity fund targeting up to $750 million, as the International Finance Corporation considers a proposed commitment of as much as $50 million.

The proposed investment in Capital Alliance Private Equity Fund V (CAPE V) would comprise up to $30 million in equity and a further $20 million co-investment facility, according to disclosures reported by The EastAfrican on November 12.

The fund, managed by African Capital Alliance (ACA), is seeking between $500 million and $750 million to invest in mid-sized businesses across sub-Saharan Africa. The IFC's proposed participation is not a completed investment.

Enelamah established ACA as an African-focused investment firm and remains its chairman. His professional background spans private equity, investment banking and consulting, with more than 30 years of experience in the financial sector. He began his private equity career in New York and Johannesburg, after earlier experience at Goldman Sachs and Arthur Andersen.

Under his leadership, ACA has developed into a pan-African investment management firm with interests in private equity, real estate and asset management. The company says it has raised more than $1.2 billion across four private equity funds and a real estate fund, building a portfolio across sectors including telecommunications, oil and gas, financial services, technology, energy and consumer goods.

Its previous investments include MTN Nigeria, Union Bank of Nigeria, Aradel Holdings and Food Concepts. The firm's portfolio has also expanded beyond Nigeria, with businesses such as Continental Reinsurance maintaining operations across several African markets.

The proposed fifth fund would give ACA another opportunity to deploy capital into established businesses seeking expansion financing. It plans to acquire controlling and significant minority stakes in between 10 and 15 companies, with individual investments expected to range from $20 million to $80 million.

Its investment strategy covers renewable energy, technology, financial services, fast-moving consumer goods, aviation, and security and risk management. The approach is designed to give ACA influence over the strategic direction of its portfolio companies while allowing some existing shareholders to retain ownership positions.

The proposed IFC participation could strengthen the fund's fundraising prospects. The development finance institution expects its equity investment to help the fund reach a viable first close, while the additional co-investment facility would provide follow-on capital for selected portfolio companies.

For Enelamah and ACA, the fund represents a continuation of an investment strategy built around identifying African businesses with room to grow and providing capital and management expertise to support that expansion.

The fundraising also comes as institutional investors continue to assess opportunities in African private markets. By targeting mid-sized companies across several sectors and countries, CAPE V aims to reach businesses that may need substantial capital to expand operations, improve productivity and enter new markets. If the fund reaches its target, it would provide ACA with a sizeable pool of capital for its next phase of investment activity across the continent.