Angola Sovereign Fund creates five more venture capital funds

APRIL 14TH, 2015    NEWS

The Angola Sovereign Fund has set up five venture capital funds for high-growth industries and the economic and social development of Angola and sub-Saharan Africa, the fund said in a statement sent to Macauhub.

The statement, issued Monday, said that the five funds have starting capital of US$ 1.4 billion to be invested in venture capital investments over the next three to five years in projects in the mining, logging, agriculture and health sectors.

The fifth fund, called “Mezzanine Fund” is intended to support entrepreneurs where financing through traditional debt does not apply, providing US$250 million over the next five years.

A “Mezzanine Fund” is basically a fund for capital investments in which the lender wins the right to convert the loan into equity of the company if the loan is not paid on time and in full.

The Angola Sovereign Fund also announced it had founded a company focused on creating micro-business incubators for Angolan entrepreneurs.

José Filomeno dos Santos, the President of the Fund, in the statement said, “the new sectors covered by the investments of the Angola Sovereign Fund have high potential and sustainability, with various non-financial benefits such as creation of new jobs and vocational training.”

The five new investment funds are added to two existing funds, announced in the third quarter of 2014: a Fund with capital of US$1.1 billion focused on infrastructure, which invests in public-private partnerships, privatisation and major industrial developments and the Hospitality Fund with capital of US$500 million, which plans to fill a significant gap in hotel management capacity with international standards in the region. (macauhub/AO)