RIYADH, 30 November 2004 — Prince Alwaleed ibn Talal and Zephyr Management LP (Zephyr) have announced that Kingdom 5-KR-150, Ltd. has signed an agreement to invest $35 million in the Pan-African Investment Partners Fund and the Pan-Commonwealth African Partners Fund along with co-investors the International Finance Corporation (part of the World Bank), the Development Bank of Southern Africa Ltd. and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Kingdom 5-KR-117, Ltd. will also acquire a 50 percent interest in Kingdom Zephyr Africa Management Company (KZAM), which manages the funds. KZAM has management teams based in Johannesburg, Accra, and London.
The funds have combined commitments of more than $100 million for investment in private equity opportunities in regional and pan-African businesses. The investment strategy focuses on investing in multi-country enterprises to facilitate their growth and capacity to compete regionally and internationally. Investment will be made in established, cash-flow positive or profitable companies with proven management and business models utilizing conservative but high-return investment structures with self-liquidating securities alongside equity investments. Such securities may include straight debt, convertible debt or debt with warrants and viable divestment options will be pre-identified.
KZAM will be mobilizing multiple networks, and the funds are expected to contribute to private sector economic growth in Africa.
