Ninety One has officially closed its third Africa Credit Opportunities Fund (ACO3) at $404 million in commitments, including leverage, from institutional investors located across Africa, Europe, the United Kingdom, the United States, and Canada.
This marks the third vehicle within Ninety One’s Emerging Market Senior Credit strategy. The capital was gathered from a diverse group of investors, including development finance institutions, pension funds, and family offices.
Targeting Senior Secured Lending
The fund focuses primarily on senior secured private credit opportunities, providing financing to established businesses and infrastructure projects across the continent and other emerging markets.
The strategy relies on conservative financial leverage and structural protections to target risk-adjusted returns for investors.
The fund has already built a portfolio of more than 30 investments spanning communications, consumer businesses, financial services, healthcare, industrials, and materials. Its exposure extends beyond Africa to include Latin America, Asia, and Central and Eastern Europe. Several of these positions have already been exited, showing the fund is active rather than static.
Targeting Senior Secured Lending
Investors see value in the gap between what businesses need and what traditional lenders provide. Ninety One representatives noted that financing gaps and favorable supply and demand conditions compared with developed markets support this demand for private credit.
Nathaniel Micklem, Co-Head of Emerging Market Alternative Credit, described the close as a reflection of continued confidence in the region.
“The successful close of Africa Credit Opportunities Fund 3 reflects investors’ continued confidence in the attractive opportunities available in Africa and emerging markets private credit,” Micklem said.
He added that the financing gap creates openings for lenders with local expertise. Ninety One’s long-standing presence, local expertise, and partnerships position the firm to identify resilient investment opportunities that can deliver compelling risk-adjusted returns while supporting sustainable economic growth.
For the businesses on the ground, this influx of capital is often the difference between expansion and stagnation.
In many emerging markets, established operators cannot easily access traditional bank loans due to rigid requirements or a lack of historical data.
By filling this void with senior secured debt, the fund provides the working capital necessary for infrastructure development. It also allows for commercial scaling without forcing owners to dilute ownership stakes.
Sustainability and Track Record
The fund incorporates Ninety One’s sustainability framework, with the strategy seeking to promote environmental and social characteristics alongside economic productivity.
The Emerging Market Senior Credit strategy has raised $815 million since its inception across three funds. It has deployed more than $1.4 billion to over 100 counterparties in more than 30 countries, including recycled capital.
