Fund ADP II mobilises $400 million for African SMEs
London-based private equity fund Development Partners International has just completed a first closing of its fund Africa Development Partners II (ADP II) at $400 million (€290.3 million).London-based private equity fund Development Partners International has just completed a first closing of its fund Africa Development Partners II (ADP II) at $400 million (€290.3 million).
The fund invests in companies in various sectors, including financial services. It will provide capital to high-growth African businesses to help them develop and contribute to the economic growth on the continent.
A line of credit provided by the Overseas Private Investment Corporation (OPIC) will allow Development Partners International to allocate $150 million as loans to SMEs, Ecofin news agency reports.
The remaining $250 million, which were raised from institutional investors and development partners, will be invested as equity in African SMEs operating in the financial services, consumer goods, retail, logistics and health sectors.
CDC Group, the UK's development finance institution, has invested $75 million (€56.5 million) in ADP II.
The fund will typically take significant minority stakes in businesses, focusing on high growth companies that are seeking to expand into newly liberalising countries, such as Angola, Ethiopia, Mozambique and Rwanda, the CDC said in a statement.
It will also support improved governance in companies and the implementation of good social and environmental practices.