London-based Silk Invest Ltd just announced the successful launch of both its Luxembourg domiciled African Lions Fund and Arab Falcons Fund (see charted performance against relevant indices hitherto below).  Per one report, the new funds are being aimed at European fund of fund managers (though the firm ultimately seeks to target “more traditional investors such as pension funds”), and will be capped at $500m.  

 

Touting the funds, Silk CIO Daniel Broby noted that African and Arab countries “have restructured their economies and are best positioned to profit from the next stage of globalization.”  Further, he added, “we have a generational opportunity in frontier markets; industrialization is coming to the final places in the world where it hasn’t come yet – namely Africa and the Arab world.”

 

Both funds will limit exposure to individual countries as well as individual sectors to 25%. Broby remarked that the African fund will take a “whole continent approach,” dominated by the big markets of South Africa and Egypt. The Falcons fund, meanwhile, will be aimed at both the Mena and the Maghreb regions (including Morocco, Algeria, Tunisia and Libya), “giving investors a fabulous amount of diversification.”  Morocco, for instance, just upgraded its GDP estimate to above 5.6%, making it the world’s fastest growing economy.

 

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