The new fund brings the total amount raised by the private equity group for investment in the African continent in 2015 to $1.37bn (£870m, €1.2bn), after it raised $990 million in April for its third Sub-Saharan Africa fund.
The new Abraaj North Africa Fund II (ANAF II) will target well-managed, mid-market businesses in Algeria, Egypt, Morocco and Tunisia that have demonstrated robust growth and the ability to become regional leaders in their field.
“North Africa has the highest income level on the continent with a middle class that is expected to double its total consumption between 2014 and 2024, leading to the creation of further investment opportunities across diverse sectors,” said Arif Naqvi, chief executive of the Abraaj Group.
The group, which currently manages around $9bn across its regional, sector and country-specific funds, said it has more than a decade of investing experience in Africa with about $3bn in committed and deployed capital across the continent.
It said it began investing in North Africa in 2006 and has made 23 investments across eight sectors as well as 11 full and partial exits from these investments.
The new ANAF II fund garnered investment from global institutional investors, pension funds, sovereign wealth funds and development finance institutions.
Around 63% of the capital committed came from European and North American investors, with institutional investors, pension funds and development finance institutions accounting for 86% of the committed capital.