Breakdown: PE funds that have received investment from the African Development Bank
The African Development Bank (AfDB) is a regional multilateral development finance institution established to contribute to the economic development and social progress of African countries. The AfDB is a meaningful investor in Africa-focused private equity (PE) funds. Here is a snapshot of some of the PE funds that received backing from the AfDB over the past 12 months.
Africa Sustainable Forestry Fund II
The AfDB approved a $20 million investment in the Africa Sustainable Forestry Fund II, managed by Criterion Africa Partners, a forestry sector investment company based in South Africa.
The fund intends to play a role in rehabilitating existing plantations to increase their productivity. Fund II mainly targets the regions of Eastern and Southern Africa, which account for the bulk of the continent’s forest resources.
Alitheia IDF
Alitheia IDF is a fund supporting women-owned and -led businesses, to boost women’s economic empowerment and access to finance in sub-Saharan Africa. A joint venture between Alitheia Capital in Nigeria and IDF Capital in South Africa, Alitheia IDF was seeded with $12.5 million from the AfDB.
The fund targets SMEs that address unmet demand for essential goods and services and operate in priority sectors where women entrepreneurs are dominant both as producers and consumers, such as agribusiness and consumer goods.
Yeelen Financial Fund
The AfDB committed €12 million to the Yeelen Financial Fund, managed by private equity firm Cauris Management.
Yeelen Financial Fund LP is a 12-year investment fund which aims to support the growth and development of banking, insurance, microfinance, financial technology and other types of financial services institutions within the West African Economic and Monetary Union (WAEMU).
Established in 1995, Cauris Management is the first private equity fund management company in French-speaking West Africa.
African Development Partners III
The AfDB has signed off on a $30 million equity investment in African Development Partners III, a third-generation pan-African private equity fund targeting established and growing companies with an emphasis on those benefiting from Africa’s growing middle class.
The fund is managed by ADP III GP Mauritius Limited, an affiliate of Development Partners International.
Investisseurs & Partenaires Afrique Entrepreneurs 2
The AfDB approved an equity investment of €7 million into Investisseurs & Partenaires Afrique Entrepreneurs 2 (IPAE.2). IPAE.2 is a 10-year impact fund targeting to invest into 30 to 40 small and medium-sized enterprises (SMEs) in sub-Saharan Africa.
The main target sectors include healthcare, agribusiness, financial services, education, consumer and retail. The fund is managed by I&P Gestion, a French-African team of approximately 30 staff based in Paris and in several African offices.
AfricInvest FIVE
AfricInvest’s FIVE fund received a €15 million commitment from the AfDB. FIVE is an evergreen platform for investing in financial institutions in Africa. Through its investments, FIVE aims to improve access to financial services for the growing African population, while achieving attractive financial returns for its investors.
Nigeria Energy Access Fund
Nigeria Energy Access Fund (NEAF), a new private equity fund developed by Nigerian impact investment firm All On, has received a $500,000 grant from the Sustainable Energy Fund for Africa (SEFA), managed by the AfDB. NEAF will make strategic investments in sustainable energy in Nigeria, particularly in the country’s burgeoning off-grid and mini-grid sectors.
The SEFA grant will support specific workstreams to set NEAF in motion and enhance its engagement with private and public sector investors. NEAF will be a first-of-its-kind facility to provide eligible projects and businesses with equity solutions that are currently unavailable in the market.
Adiwale Fund 1
The AfDB signed off on a €12.5 million equity investment in Adiwale Fund 1, a first-generation private equity fund targeting high growth SMEs in francophone West Africa. The fund will take minority stakes in vibrant SMEs in countries where economic prospects and the fund’s networks permit a rapid scale up.
Deal size for the fund will range from €3 million to €8 million. Primary target countries will include Côte d’Ivoire, Senegal, Burkina Faso and Mali, while secondary beneficiaries will include Togo, Benin and Guinea.
Razorite Healthcare Africa Fund 1
The AfDB approved a $10-million equity investment in the Razorite Healthcare Africa Fund 1 (RHAF1) to help improve healthcare infrastructure delivery across the continent.
RHAF1, to be registered in Mauritius with a 10-year term, aims to address the growing demand for affordable and quality healthcare services in several countries in sub-Saharan Africa.
The fund will provide growth capital to existing operating healthcare infrastructure facilities which show high potential for growth in the healthcare infrastructure value chain.
Metier Sustainable Capital Fund II
The Metier Sustainable Capital Fund II, which channels funds to renewable energy and resource-efficient infrastructure projects across sub-Saharan Africa, received a $20 million investment from the AfDB. Metier is a well-established fund manager with a track record of deploying more than $550 million in African countries, including solar, wind and hydropower projects in Southern and East Africa.
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