Private equity power house TPG and billionaire Mo Ibrahim partner to invest up to $1 billion in Africa

Sudanese billionaire Mo Ibrahim has partnered with TPG to invest up to $1 billion in Africa.

TPG, one of the world’s largest private equity firms with $70 billion in assets under management, plans to invest up to $1 billion in Africa in a partnership with Sudanese billionaire, Mo Ibrahim.

TPG will be working with Mo Ibrahim’s $500 million private equity outfit, Satya Capital.

TPG is the latest in a string of large US private equity firms that have recently started making moves into Africa.

In late 2014, the Carlyle Group bought an 18% stake in Nigeria‘s Diamond Bank.

Also, in August 2014, it was announced that Africa’s richest man, Aliko Dangote, would be partnering with both Carlyle and Blackstone to invest in Africa.

Blackstone and its Africa arm, Black Rhino, recently announced the appointment of Nigeria’s former Central Bank Governor, Lamido Sanusi, as the Chairman of Black Rhino.

Rothschild announced in July 2014 that it had raised $530 million to invest in Africa.

In June 2014, KKR announced that it would be investing in a flower business in Ethiopia, one of Africa’s fastest growing economies.

These new US entrants join other emerging markets focused private equity firms, like DPI, Abraaj, and Helios, that have been successfully making moves in Africa for a much longer period.

Private equity entrants into Africa are attracted by Africa’s high growth rates, well above global averages and forecasted at 4.5% for 2015.

Private equity deals in Africa reached a seven-year high in 2014, at $8.1 billion.

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