African Capital Alliance (ACA), a Nigerian investment management firm founded by Okey Enelamah, is targeting up to $750 million for its fifth private equity fund as it seeks to expand financing opportunities for businesses across sub-Saharan Africa.
The proposed fund, known as Capital Alliance Private Equity Fund V (CAPE V), is expected to raise between $500 million and $750 million for investments in medium-sized companies with opportunities to expand their operations, improve productivity and strengthen their market positions.
The development was disclosed in information published by The EastAfrican on November 12, 2026.
The International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, is considering a commitment of up to $50 million to the fund.
The proposed IFC participation comprises up to $30 million in equity investment and an additional $20 million co-investment facility.
However, the proposed investment is still under consideration and should not be regarded as a completed financial commitment.
According to the disclosed investment plan, CAPE V intends to acquire controlling and significant minority stakes in between 10 and 15 companies.
Individual investments are expected to range from $20 million to $80 million.
The fund will focus on businesses operating in several sectors, including renewable energy, technology, financial services, fast-moving consumer goods, aviation, and security and risk management.
The strategy is designed to provide growth capital to established businesses that require funding to increase production, enter new markets and improve operational efficiency.
Private equity financing differs from traditional bank lending because investment firms generally acquire ownership stakes in companies rather than simply providing loans.
Through these investments, private equity firms may participate in strategic decisions, business restructuring and expansion planning, with the objective of increasing the value of the companies before eventually exiting their investments.
ACA’s proposed fund could therefore provide businesses with more than financial resources. It may also offer strategic support, industry experience and access to broader commercial networks.
The proposed participation of the IFC is also significant because development finance institutions can help attract additional investors into funds targeting emerging markets.
The IFC said its proposed equity investment could support the fund in reaching a viable first close, while the co-investment facility would provide additional capital for selected portfolio companies.
The institution’s participation could also provide reassurance to other investors assessing the fund’s strategy and governance standards.
African Capital Alliance has built a record of investment activity across several African industries.
According to the disclosed information, the firm has raised more than $1.2 billion through four private equity funds and a real estate fund.
Its previous investments have included businesses such as MTN Nigeria, Union Bank of Nigeria, Aradel Holdings and Food Concepts.
The firm has gradually expanded beyond its initial Nigerian investment focus, developing interests in companies operating across different African markets.
The new fund comes at a time when access to long-term investment capital remains a major issue for many African businesses.
Although the continent has significant entrepreneurial potential, medium-sized companies often struggle to secure the financing needed to compete with larger international businesses.
Traditional bank loans may also be unsuitable for some expansion projects because of repayment requirements and collateral conditions.
Private equity funds can provide an alternative source of capital, particularly for companies with strong growth prospects.
However, the success of CAPE V will depend on its ability to raise the targeted amount, identify suitable businesses and deliver returns to investors.
For African companies, the fund could create opportunities to attract investment and strengthen their position in increasingly competitive markets.
