Singapore's Temasek Holdings is teaming up with the investment holding company of the Oppenheimer family to set up a $300m private equity fund that will focus on consumer and agriculture businesses in Africa.
Tana Africa Capital will be an equal joint venture between E. Oppenheimer & Son and Temasek's indirect wholly-owned subsidiary, Sennett Investments (Mauritius).
"With a growing population of more than a billion, the African domestic economies are growing with the emergence of a middle class with an increasing disposable income. We believe that the consumer and agriculture-related businesses will strongly benefit from this trend," Temasek's investment managing director Nagi Hamiyeh was cited as saying.
Tana Africa may also consider opportunities in the media, health and education sectors, he said.
Temasek, which had a portfolio valued at more than $160bn as of March 2011, has a 45:55 mix between emerging and mature economies. Given the slowdown in mature markets, it said it would focus on emerging economies, growing middle income populations and "emerging champions" for its investment picks.
Tana Africa Capital would appear to ticks all those boxes.