Cauris Management, a West African private equity fund management company operating in accordance with the banking regulations and corporate laws in effect within the UEMOA (West African Economic and Monetary Union), announced in February 2013, the voluntary liquidation (the final phase of the Cauris Investissement Fund’s closure) of the Cauris Investissement Fund, its first fund under management, which was established and licensed as a financial institution in 1995 in the absence of specific regulations governing the private equity industry in WAEMU countries.
The Life Cycle of Private Equity Funds
According to regulations, private equity funds have a limited lifespan, generally ranging from 10 to 12 years, with a life cycle that can be summarized in four stages:
- raising capital from investors;
- investing in companies;
- divestment/sale of equity interests with a gradual return of capital to investors;
- closing/liquidation of the fund.
Results of the Cauris Investment Fund Following Its Closure
Based on the Cauris Investment Fund’s years of operations—the first subregional private equity fund management initiative—the following results emerge:
As this first venture into private equity fund management proved conclusive and satisfactory, it will pave the way for other equally successful fundraisings.
New Funds Following the Closure of the Cauris Investissement Fund
Following Cauris Investissement, Cauris Management carried out additional fundraisings:
- the 2006 fundraising for the second fund, Cauris Croissance, in the amount of 10 billion CFA francs. The funds raised were invested in 11 companies, and the fund is currently in its divestment phase, with a planned closure in 2016;
- the 2010 fundraising for the third fund, Cauris Croissance II, totaling 60 million euros (39.4 billion CFA francs), which is currently in the investment phase and is scheduled to close in 2020.
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