Tiring of sex, drugs and rock 'n roll, the 1980s rock icons have found a new thrill - private equity.

First U2's Bono became a partner in media investor Elevation Partners. Now Bob Geldof is looking to raise $1-billion for an African private equity fund called 8 Miles - the distance between the southern tip of Europe and northern Africa.

Since organising the Live Aid concert in the mid-'80s, Geldof has campaigned for aid and debt forgiveness for African nations. His political contacts might help open commercial doors.

Africa has consistently defied investment optimists. But there are now some encouraging signs. Real gross domestic product rose 4.9% per year from 2000 through 2008, twice its pace in the 1980s and 1990s, said McKinsey Global.

Geldof's is not the only fund looking to take advantage of Africa's economic development. But it will be one of the biggest and best connected.

The 8 Miles fund will be run by Mark Florman, a former executive at private equity firm Doughty Hanson, and Gordon Moore, who worked at Cinven.

The African Development Bank and the International Finance Corporation, the World Bank's private sector arm, will both invest $50-million in the venture. Geldof has committed an undisclosed amount of his own money.