By Anna Lyudvig, Senior Correspondent at Africa Asset Management Magazine
February 19th, 2014
Newly formed California-based firm Africa Capital Group is working towards the launch of an African equity fund, its founder and portfolio manager Peter Thoms, has revealed.
According to Thoms, the fund will be most likely launched “in the next two months”, subject to the regulatory approval.
“We have investors that we are talking to, but we have not started raising money for the fund yet, we still have to file our documents to the SEC,” he said.
“If we can get to $20m by the end of the year then I will be happy with that. It can be higher than that, it can be lower, we just have to see what sort of appetite there is in the US,” he told Africa AM.
“In the US, there are very few Africa funds in existence right now and so we won’t really know what the American appetite is until we get out there and start marketing it,” he added.
According to Thoms, the fund will also be taking international investors, but for the initial marketing push the firm is going to try “to get the word out to as many US investors as possible”.
The investment objective of the fund is long-term capital growth.
“We would hope for returns in the double digit range; we are shooting for something up there north of 10%,” he said.
The fund will invest in listed equities, predominantly in Sub-Saharan African markets, and will have a portfolio of between 30 and 50 stocks.
Thoms said in SSA the Africa Capital Group favours Kenya and Nigeria.
“In East Africa, Kenya represents the best way to play the coming growth and integration of the region. Also in West Africa, Nigeria is the best place to buy the companies that are exposed to rapid economic growth of the region,” he said.
“I would not put any one sector ahead of the other, but financials is certainly an important sector in any economy; also we think the consumer market is going to be a good market to play and as well as telecoms,” he added.
Africa Capital Group LLC
1330 Orange Avenue, Suite 302
Coronado, CA 92118