LP Note: Unbundling the new Helios strategy

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Helios Investment Partners is on the road with its latest African vehicle, with a strategy that will see its sell the new fund alongside six new vehicles that feature its brand. The strategy will see it attract a more diverse pool of LPs than its previous raises, targeting a total of $8billion in committed capital. Is Helios paving the way for a new era in African fundraising? Private Equity Africa pens an opinion piece to LPs on the GP’s new strategy, as part of the PEA LP Monthly Newsletter.

Much has been said about Helios setting a lower-than-expected target for its new pan-African generalist private equity vehicle.

This comes after its predecessor, Helios Fund IV brought in a fraction of its original target.

Concerns have also been around senior departures – losing its fundraising partner or more than 10 years, a deals partner leaving after 10 years, and it’s lead dealmaker departing after 15 years.

With Helios being a flag bearer, previously raising Africa’s largest fund – some worry that this may be a prediction for the entire industry.

However, this new pan-African fund is just one of the six vehicles that Helios is raising under its new umbrella – including a new hedge fund.

The combined vehicles will see it raise more than $8.2billion in fee earning committed capital, with new people brought in to lead the strategies.

This diversifies its LP-base, allowing LPs to pick and choose interests – a difficult task in blind-pool vehicles. All the while, Helios is also tapping the public markets with a listed platform.

Splitting up strategies also opens co-investments – and loops in LPs that favour specialist over generalist plays.

The fundraising is being led by Temitope Lawani and Babatunde Soyoye are managing partners at Helios.

Other GPs have also been venturing into parallel funds, albeit with lesser diversity.

Amethis is raising two funds in tandem, one focused on Africa, and the other on European companies with an African angle.

Apis is also on the road with parallel funds, while TLG is also managing local funds, in addition to its main fund strategy.

This may very well be the future of African fundraising.


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