Bloomberg News

Caravan Plans to Invest $90 Million in African Frontier Equities

October 25, 2011

Oct. 25 (Bloomberg) -- Caravan Capital Management, an investment fund based in Washington state, plans to invest as much as $90 million in African equity frontier markets, Chief Investment Officer Clifford Quisenberry said.

“We expect to increase the share of frontier African equities to 30 percent of our portfolio in two years from a current 23 percent,” he said yesterday on the sidelines of a Society of Financial Analysts of Mauritius conference in Balaclava, north of Port Louis, the capital. “The investment would reach $90 million in seven years when the fund reaches its capacity limit.”

The fund has invested in 36 countries considered as frontier markets, according to Quisenberry.

“These stocks offer the most returns on investment,” he said. “Illiquidity is a challenge. They are tomorrow’s emerging markets” and trading will become easier.

Caravan Capital is exploring possible investments in Ivory Coast and North African countries, Quisenberry said. It already holds assets in Zambia, Ghana, Malawi, Kenya, Burkina Faso, Senegal, Tanzania and Nigeria.

--Editors: Ben Holland, Digby Lidstone.

To contact the reporter on this story: Kamlesh Bhuckory in Port Louis via Johannesburg at gbell16@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net


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