Private equity firm Abraaj raises $1.3B for Africa investment

Emerging markets private equity group Abraaj has raised more than $1.3bn for two funds investing in Africa, the largest amount amassed for direct deals across the continent, people aware of the matter say.

The two funds mark further global investor interest in Africa as private equity groups bet on strong growth as Sub-Saharan economies develop and the middle class grows, while stability returns to parts of north Africa wracked by unrest for the past four years.

Dubai-based Abraaj, which has been fundraising for these funds for eight months, has capped the Sub-Saharan Africa fund at $990m, higher than the $800m the company had originally sought to raise. The North African fund will probably end up oversubscribed at $340m, exceeding its $250m target.

Read more: Abraaj raises $1.3bn for African investment funds –