First close for E3 Low Carbon Economy Fund for Africa
E3 Capital and Lion’s Head Global Partners have announced a first close for the E3 Low Carbon Economy Fund for Africa (E3LCEF) at $48.1 million. The early-stage venture fund will focus on investing in next-generation low-carbon entrepreneurs in Africa scaling new technologies and business models enabled by the low carbon economy. The fund will invest in early-stage companies and hold significant capital for follow-on in later rounds. The fund has had its first close at $48.1 million and targets a second and final close of up to $100 million within 12 months.
E3 Capital and Lion’s Head combined forces to leverage their respective experience and footprint in Africa. E3 Capital also currently manages a €75 million fund (EAVF I) investing in decentralised energy businesses across Africa, with 15 investments in East-, West- and Southern Africa. Lion’s Head is an established emerging and frontier market focused asset manager with over $700 million under management and through a separate subsidiary provides corporate finance advisory services to governments, multilaterals, and private companies. Together, E3 and Lion’s Head have invested in more than $400 million in 30 African countries.
The fund is backed by KfW (in collaboration with BMZ, the German Ministry for Economic Cooperation and Development); FMO, the Dutch entrepreneurial development bank; Swedfund and Proparco.
“We feel this is a great time to back low-carbon businesses in Africa which are starting to see potential for substantial scale. The E3 team brings unique expertise working with early-stage companies across the continent and have demonstrated this ability with their existing portfolio which is starting to show signs of clear winners,” says Clemens Calice, Lion’s Head CEO. “We are excited to back a new generation of entrepreneurs.”
“African businesses are starting to emerge with clear product-market fit and a strong commercial potential at the core within the low carbon economy. The quality of entrepreneurs we are seeing is striking. We are passionate about helping African entrepreneurs build the next generation of innovative businesses that innovate, scale and impact the lives of all of us in the coming years,” says Paras Patel, founder and managing partner of E3 Capital. “My partner, Vladmir Dugin, and I are grateful for the support we have received from our investors and look forward to engaging with many existing and new entrepreneurs in the coming months.”