African Capital Alliance (ACA), the Nigerian-founded private equity investment manager, is seeking to raise between US$500 million and US$750 million for its fifth private equity fund, Capital Alliance Private Equity Fund V (CAPE V), as the International Finance Corporation (IFC) considers a proposed investment of up to US$30 million in the fund and a separate US$20 million co-investment envelope.
The proposed investment, disclosed by IFC on November 2, 2026, comprises an equity commitment of up to US$30 million, subject to a limit of 20% of the fund's total committed capital, alongside a US$20 million co-investment facility under delegated authority. The proposal remains pending approval, with an indicative IFC Board date of January 31, 2027.
CAPE V will target mid-market companies across sub-Saharan Africa, pursuing control and significant minority positions in businesses with established performance profiles and the potential to become market leaders. The fund intends to build a portfolio of 10 to 15 companies, with individual transaction sizes ranging from US$20 million to US$80 million.
The proposed IFC commitment is expected to support the fund's first close, while the co-investment envelope will provide additional capital for selected portfolio companies. IFC's participation as an anchor investor is also expected to strengthen confidence among prospective investors in ACA's regional investment strategy and its ability to deploy capital across African markets.
ACA's Fundraising History and IFC Relationship
Founded in 1997, African Capital Alliance was the first private equity firm to establish an on-the-ground presence in Nigeria. The investment manager has raised more than US$1.2 billion across four private equity funds and one real estate fund, progressively expanding its investment activities beyond Nigeria to companies with regional operations and pan-African exposure.
IFC's relationship with ACA dates back to 1999, when it invested in the sponsor's inaugural Capital Alliance Private Equity Fund (CAPE I) as part of its strategy to support the development of the private equity industry in Nigeria and across Africa. It subsequently participated in CAPE II, Capital Alliance Private Investments Company (CAPIC) and CAPE III.
In 2015, IFC approved a US$40 million equity investment in Capital Alliance Private Equity Fund IV (CAPE IV), which was targeting US$600 million in total commitments. The 10-year closed-end fund focused on growth companies in Nigeria and other countries along the Gulf of Guinea. IFC's proposed participation in CAPE V therefore continues an investment relationship spanning more than two decades and multiple fund cycles.
CAPE V Fundraising and Investment Strategy
CAPE V is structured as a limited partnership established in Mauritius and will invest exclusively in Africa, with a primary focus on sub-Saharan African markets. Its investment strategy is centred on mid-cap businesses, with the fund seeking to acquire control or significant minority interests in companies positioned for sustained growth.
The fund's proposed investment range of US$20 million to US$80 million reflects its focus on established businesses requiring growth capital and strategic support to strengthen their market positions. Its planned portfolio of 10 to 15 companies will be built around businesses with strong operating performance and the potential to become market leaders.
The fund's fundraising activity was also reflected in a Form D filing submitted by Capital Alliance Private Equity V L.P. to the US Securities and Exchange Commission on August 14, 2026. The filing recorded a first sale date of July 30, 2026, with US$1 million reported as sold to one investor at the time of filing. The disclosure does not identify the investor or establish that the fund had achieved a formal first close.
If approved, IFC's proposed participation will add to its longstanding relationship with ACA while providing a combination of fund-level and portfolio-level capital to support the manager's fifth private equity fund.
0 Comments