North Africa’s FoF moment
Funds of funds (FoFs) are gaining ground in North Africa because they offer limited partners (LPs) a practical way to spread risk, gain exposure to private equity and venture capital, and avoid the heavy lift of sourcing and monitoring managers directly. At their simplest, funds of funds pool capital from limited partners and invest that money across a portfolio of private equity or venture capital funds rather than directly in companies. This appeal is strongest where large domestic institutions lack in-house capacity to run direct PE programmes.
Funds of funds (FoFs) have long been challenging to track in Africa, with limited systematic data on volumes or outcomes. But in North Africa, the picture is unusually clear, and deliberately policy-driven. Here, governments and public entities have turned FoFs from concept into reality, anchoring vehicles that channel capital into domestic and regional private equity and venture funds.
Tunisia led the charge in
