African Infrastructure Investment Managers (AIIM) has successfully closed its fourth pan-African infrastructure fund, African Infrastructure Investment Fund 4 (AIIF4), raising a total of $954 million. The fund exceeded its target, securing $748 million in commitments and an additional $206 million in co-investments.
AIIM’s Head of Strategic Initiatives, Paul Frankish, expressed satisfaction with the fund’s performance, noting that it surpassed expectations despite challenging global fundraising conditions. He highlighted strong support from existing investors, with many previous backers reinforcing their commitments.
The fund attracted a diverse group of 29 investors from various regions. African institutional investors contributed 25% of the commitments, while European Union countries and the UK accounted for 42%. North American investors from Canada and the USA provided 14%, and the remaining 17% came from the Middle East and Asia. This diverse investor base includes pension funds, insurance companies, sovereign wealth funds, asset managers, and family offices.
Notably, half of the commitments came from Development Finance Institution (DFI) investors, underscoring the fund’s alignment with sustainable and impactful investment goals.
AIIF4 will maintain AIIM’s strategy of investing in sustainable infrastructure across Africa, focusing on three key sectors: Digital Infrastructure, Energy Transition, and Mobility and Logistics. The fund has already committed over 60% of its capital across seven platforms, providing investors with early insights into its strategy and performance.
In a recent article on POCIT, Olusola Lawson, AIIM’s Managing Director and Co-CEO, explained that the fund’s strategy targets long-term growth driven by structural deficits and secular trends rather than volatile macroeconomic cycles. This approach aims to capitalize on the surge in data consumption, address power shortages, and meet the demands of rapidly urbanizing cities across the continent.
As a 2X Challenge Fund, AIIF4 also promotes gender diversity across its investment and portfolio management teams, further enhancing its commitment to sustainable and inclusive development in Africa.