DURHAM, N.C. - New Africa Advisers closed the New Africa Opportunity Fund, a $120 million private equity partnership that will make investments in southern Africa.
There is no U.S. pension fund money invested in the fund, said Maceo Sloan, chairman of Sloan Financial Group Inc., Durham, N.C., the parent of the adviser to the fund.
"This is smart money," said Mr. Sloan. "Private family money and insurance company money, but no pension money at all."
Mr. Sloan isn't alone in his opinion that the smart money is making private equity investments in Africa.
At a recent global private equity conference sponsored by Merrill Lynch & Co. Inc., Jim Rogers, a former investment partner of George Soros, said Africa, China and Latin America are the three most attractive investment options for the long term.
The New Africa Opportunity Fund received an Overseas Private Investment Corp. designation, which insures an investor against loss of principal, said Mr. Sloan.
New Africa Advisers, the general partner, invested 1%; other "smart money" includes a commitment from Citicorp Venture Capital, according to Mr. Sloan.