Overview Of The Aig African Infrastructure Fund

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Overview Of The Aig African Infrastructure Fund

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Overview Of The Aig African Infrastructure Fund

  1. 1. Overview of the AIG African Infrastructure Fund
  2. 2. Emerging Markets Partnership Founded in 1992 by Moeen Qureshi and Don Roth  Worldwide staff of over 70 professionals  Offices in Washington DC, Abidjan, Brunei, London,  Hong Kong, Singapore, Johannesburg and Bahrain Nearly US$6.0 billion under management  Structured over 90 transactions in 30 countries  Overview of the AIG African 2 Infrastructure Fund
  3. 3. AIG African Infrastructure Fund Core investors:   American International Group (AIG)  International Finance Corporation (IFC)  African Development Bank (ADB)  El Paso Energy  Development Bank of Southern Africa (DBSA)  Proparco  European Investment Bank (EIB) Overview of the AIG African 3 Infrastructure Fund
  4. 4. AIG African Infrastructure Fund Largest private equity fund focused on Africa  Commitment of over $400 million from 16 investors  Closed in April 2000  Five-year commitment period  Ten-year fund life  Target: 20-25 % annual return to integrate net of  Management fees Overview of the AIG African 4 Infrastructure Fund
  5. 5. AIG African Infrastructure Fund Chairman of Board of Advisors: H.E. Nelson Mandela  Chairman of Investment Committee: Donald Roth  Staff : Edward V. K. Jaycox - Chief Executive Officer  Thomas R. Gibian - Chief Operating Officer 14 Professionals :- (8 from Africa) Three offices: Washington DC, USA;  Abidjan, Côte d’Ivoire; Johannesburg, Republic of South Africa Overview of the AIG African 5 Infrastructure Fund
  6. 6. AIG African Infrastructure Fund Modus Operandi I   Infrastructure – wide definition – all but real estate and financial institutions  Very selective: - Countries - Partners - Transactions  Invest in Companies not Projects  Strategic Partners – growing companies, with aggressive business plans in Africa, especially multi-country companies  Private Sector companies - no Government controlled companies; - no start-ups Overview of the AIG African 6 Infrastructure Fund
  7. 7. AIG African Infrastructure Fund Modus Operandi II  Equity – Quasi Equity   Minority Share with strong Minority Rights and Board Seats  Prudential Limits - 10% of Fund ($40 million) in any single firm - 20% of Fund ($80 million) in any single country - $10 million minimum investment  Due diligence by Fund Staff often supplemented by consultants Overview of the AIG African 7 Infrastructure Fund
  8. 8. AIG African Infrastructure Fund Modus Operandi III   Returns from Capital Appreciation  Hold 3-5 years  Exit - IPO - Trade Sale - Put Overview of the AIG African 8 Infrastructure Fund
  9. 9. AIG African Infrastructure Fund Funds Committed to Date $254.0 million  Average Investment Size $18.0 million  Investments in near pipeline $80.0 - $100.0 million  Fully Committed by December 2004  On track to deliver 20-25% per annum net return to  Investors by end of Fund Life Overview of the AIG African 9 Infrastructure Fund
  10. 10. AIG African Infrastructure Fund • Sectoral Distribution: Diversified Telecom Agribusiness Oil & Gas Transportation Media Power Other Logistics Overview of the AIG African 10 Infrastructure Fund
  11. 11. Geographic Distribution of Portfolio and Pipeline Tunisia 2% Morocco 16% Egypt 1% Burkina 1% Algeria 12% Senegal 1% Uganda 4% Chad 3% Sudan 1% Nigeria 7% 5% or more Cote d’Ivoire 6% Ghana 1% Less than 5% Cameroon 5% DRC 3% Other Countries include •Malawi Eq Guinea 3% Tanzania Kenya 1% •Mali 9% Gabon 9% •Niger •Sierra Leone Angola •Namibia Congo B 3% •Mozambique •Rwanda Zambia 5% Unallocated = 5% South Africa 2% Overview of the AIG African 11 Infrastructure Fund
  12. 12. EMP-AFRICA FUND II Follow-on Fund   $400-500 million Fund size  Aim first closing by 1st Quarter 2005  Widen Sectoral scope – Beyond Infrastructure  Increase prudential limits  Off to a fast start Overview of the AIG African 12 Infrastructure Fund
  13. 13. EMP AFRICA FUNDS Contacts:  Edward Jaycox: jaycoxk@empw.com 1-202 530 3136 Thomas Gibian: gibiant@empw.com 1-202 530 3104 Emerging Markets Partnership: www.empwdc.com Fax: 1-202 331 8255 2001 Pennsylvania Avenue NW, Suite 1100 Washington, DC, 20006 USA Overview of the AIG African 13 Infrastructure Fund

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