Development Partners International (DPI), a $1.1bn Africa-focused private equity firm, has committed around 36% of its second private equity fund, ADP II, according to Runa Alam, CEO and co-founder.

 “There are two deals in the works – one approved by the investment committee and the other coming to the investment committee. When those are done we’ll be over 55% committed,” she told Africa Global Funds.

 ADP II was closed in April 2015 at $725m, significantly beating its $500m target.

 To date, the vehicle has made investments in UPM (Université Privée de Marrakech), a Moroccan university; HomeChoice, a South African retailer of home goods; and RTT, Africa’s largest privately-owned parcel distribution company.

 ADP II has also invested in Eaton Towers, a telecom tower company in Africa, which is also a portfolio company of DPI’s Fund I.

 “We’ve been investing at a very good clip. It’s a continuation of our theme of investing in companies that benefit from the emerging middle classes,” Alam said.

 Alam thinks there are opportunities across Africa, but “it depends on what companies you are invested in and how they are doing.”

 DPI believes in responsible investing and works with their companies in order to develop Environmental, Social and Governance (ESG) practices.

“We have a full-time sustainability manager. We do ESG at due-diligence; and we report to our investors annually. ESG has been ingrained in our DNA from day one. Although we are a for-profit fund, we keep track of impact measures,” Alam said.

When asked about trends in African private equity, Alam said: “Prices have come down this year and they will continue to do so. There has been more deal flow. There is also continued interest in companies in Africa to extend across borders and to become regional or Pan-African companies.”

“Despite the slowdown in Africa growth, the basic trends continue – such as a young population and urbanization –which contribute to the emerging middle class and to people buying middle class products,” she added.

DPI was set up in 2007 and currently advises two pan-African private equity funds, African Development Partners I and African Development Partners II.

“We are doing well as a firm. The returns are in line with emerging market private equity- so far so good.  This year we are busy with investing Fund II. We are also spending a lot of time working with our companies. We are also working on some exits,” Alam said.