Best Alternative Fund: African Infrastructure Investment Fund
Old Mutual Alternative Investments is Africa’s largest independent alternative asset manager, with over 30 years’ experience in the region. Paul Boynton, the firm’s Chief Executive talks us through the company and its investment strategy.
Company: Old Mutual Alternative Investments Name: Paul Boynton Contact: Doug Thomson, Head of Investor Relations Email: DThomson@oldmutualalternatives.com Web Address: www.oldmutualalternatives.com Address: Mutual Park, Jan Smuts Drive, Pinelands, Cape Town, South Africa Telephone: +27 21 509 3442
Old Mutual Alternative Investments (OMAI) is Africa’s largest independent alternative asset manager, the largest infrastructure equity manager in South Africa and a significant impact fund manager, with 138 team members who manage R56.6-billion. Our long experience investing in African markets mean we have the ability to assess risks associated with each region and company in which we invest, offering our clients reduced risk and exposure to volatility. Our experienced team manages 145 active positions and has 49 realisations. Current conditions in African markets are challenging with declining commodity prices and devaluing currencies negatively affecting growth rates. However, we believe Africa’s longer-term prospects are underpinned by favourable demographics such as a growing middle class, urbanisation and strong GDP growth. Furthermore Africa possesses around 30% of global mineral endowment and 60% of uncultivated arable land, offering a number of exciting future growth opportunities. It is our mission to mobilise capital to participate in the African growth story, in a sustainable way. The firm is divided into four units: African Infrastructure Investment Managers (AIIM); OMAI Development Impact Funds (housing and schools); Old Mutual Private Equity; and OMAI International Fund of Funds. AIIM has six infrastructure funds, 39 investments and 17 exits. Its aim is to invest in private equity infrastructure investments in sub-Saharan Africa, many of which are in innovative projects such as renewable energy. Old Mutual Private Equity (OMPE) has R9.9-billion assets under management and R8-billion capital deployed since 2003. It has one of the best track records in the market with a 31.3% internal rate of return (IRR) and 2.5 times money back (TMB) over the last 15 years. OMAI International Fund of Funds manages three fund of funds (International Fund of Funds I and II, and Africa Fund of Funds). The team’s investment experience includes emerging and developed market fund of funds, corporate finance and direct investments in Africa. Our impact funds invest in assets which benefit lower income households including property, independent schools and retirement developments, among others. Moving forward, our long-term strategy is to strengthen the firm’s position as a leading, pan-African alternative asset manager. Future plans include deepening our current expertise and execution skills in private equity and infrastructure, while broadening our existing sphere of activity in spaces and different African geographies which offer opportunities. Specific projects include landmark gas power generating projects in Ghana and Nigeria. We also have significant exposure to the South African renewable energy market and are keen to expand this in the future.