AfDB commits to BluePeak Private Capital Fund
The board of directors of the African Development Bank Group has approved an $11 million equity investment in the BluePeak Private Capital Fund toward its $155 million target for final close. The investment advances the bank’s goal of supporting mid-size firms, including in the pharmaceuticals, agribusiness, manufacturing, and logistics sectors, across Africa.
BluePeak – a flagship private capital fund domiciled in Luxembourg – will provide growth capital to middle-sized companies with the potential to become pan African market leaders. The fund will target adding value to portfolio companies by enabling their expansion, recapitalisation, and deleveraging. It is expected to make at least eight investments of $8 million to $25 million in companies with established cash flow generation.
BluePeak’s current pipeline of investments comprises 22% agri-business, 22% manufacturing and packaging, 12% pharmaceuticals, 12% fintech and financial services, and 11% each in information technology and telecommunication, logistics, and commercial real estate. BluePeak is expected to attract investment from other development finance institutions.
Walid Cherif, co-founder of BluePeak Private Capital said, “The commitment of the African Development Bank to our flagship fund is a strong sign of confidence in our strategy of supporting impactful businesses in Africa. SMEs in Africa are still facing financing challenges as a result of several macroeconomic setbacks. BluePeak was founded to fill part of this financing gap.”