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EMERGING markets private equity group Abraaj has raised more than $1.3 billion for two funds investing in Africa, the largest amount amassed for direct deals across the continent, people aware of the matter say.

The two funds mark further global investor interest in Africa as private equity groups bet on strong growth as Sub-Saharan economies develop and the middle class grows, while stability returns to parts of north Africa wreaked by unrest for the past four years.

Dubai-based Abraaj, which has been fundraising for these funds for eight months, has capped the Sub-Saharan Africa fund at $990 million, higher than the $800 million the company had originally sought to raise. The North African fund will probably end up oversubscribed at $340 million, exceeding its $250 million target. — Online