Spear Capital has launched their second fund. Focus will be on commercially viable and scalable SMEs in the fast-moving consumer goods sector in Zambia, Zimbabwe, Malawi and South Africa.
Spear Capital is a Norwegian PE investment initiative targeting SMEs in Sub Sahara Africa. Founding partners are Christian Victor Bernau from Norway and Martin Søderberg from Sweden – both with considerable experience from Southern Africa. Spear is almost fully funded by Norwegian investors and they closed their first fund in 2013.
Norfund is one of the key investors for the Spear Fund II together with Holta Invest, Gjensidige Foundation and the Dutch Treasury Development Fund Triple Jump. In total, they have invested USD 37,5 million in Fund II. This is a very good start by first close, as Spear’s total capital target for this Fund is USD 75 million.
Norfund really appreciate being an anchor investor in Spear Capital. Supporting viable and commercially driven SMEs in markets with high demand for risk capital is essential for enabling economic growth and poverty reduction in Africa, says Norfund’s CEO Kjell Roland.
The Fund’s focus will be on investments in the fast-moving consumer goods sector. Berau says that he sees an enormous potential for food and beverage, retail and pharmaceuticals in Southern Africa. As many people are moving to the cities, he believes there will be a high demand growth in these sectors.
The fund has also flexibility to consider other and related sectors where Spear have prior experience - such as manufacturing and processing. To succeed in this marked, you need to understand the culture and to be genuinely interested in the businesses.
“We invest in people and not only in companies, says Bernau.