Ninety One has successfully closed its third Africa Credit Opportunities Fund, raising $404 million including leverage, to expand private lending for companies and infrastructure projects across Africa and other emerging markets. The fund’s investor base includes prominent development finance institutions, pension funds, and family offices from Africa, Europe, the UK, the US, and Canada.
Known as ACO3, the fund focuses on senior secured private credit, utilizing low financial leverage and offering robust protections for lenders. To date, the fund has completed over 30 investments spanning Africa, Latin America, Asia, and Central and Eastern Europe. These investments cover diverse sectors, including communications, consumer businesses, financial services, healthcare, industry, and materials, with several exits already achieved.
ACO3 initially secured a $260 million first close in November 2024, anchored by the IFC, British International Investment, and the Swiss development finance institution SIFEM. Additionally, Standard Bank provided a $45 million debt facility linked to climate and social targets. This final close brings the total assets raised under Ninety One’s Emerging Market Senior Credit strategy to $815 million across three funds.
The broader strategy has deployed more than $1.4 billion, including recycled capital, through over 100 counterparties across more than 30 countries. Ninety One’s Africa Credit Opportunities strategy, established in 2014, targets approximately 75% of its investments in Africa and 25% in other emerging markets. As of June 30, the firm managed $244 billion in assets.
Ninety One noted that the demand for private credit is driven by a significant gap between the financing needs of businesses and infrastructure projects and what traditional banks and public debt markets can provide. ACO3 is led by Steven Loubser and Kobina Sam, whose team brings 18 years of experience in managing private and alternative credit investments in emerging markets. The fund will continue deploying capital, seeking returns from secured loans for borrowers who may have fewer financing options than companies in developed markets.
Key Takeaways
The $404 million close highlights the growing role of private credit as a vital capital source for African businesses and infrastructure projects. While bank loans remain the primary form of debt financing across the continent, corporate bond markets are relatively small, and access to international debt can fluctuate with interest rates, currencies, and investor risk appetite. This environment creates ample opportunities for funds that can lend directly and tailor repayment terms to individual borrowers.
Ninety One is addressing this gap through senior secured loans, which occupy a higher position in the repayment hierarchy and feature protections designed to mitigate losses in the event of borrower distress. This strategy also provides global institutions with a streamlined avenue to invest in African credit without directly lending to individual companies.
Although ACO3 is not restricted to Africa, enabling the manager to diversify exposure across various regions and sectors, the continent remains the core market. The fund’s growth from its $260 million first close in 2024 to the final $404 million demonstrates strong investor confidence, with capital being added after initial deployments began. For African companies, the broader trend is that private markets are increasingly becoming a major component of the funding mix alongside traditional banks, public bonds, development finance, and equity.
