The impact investor Vital Capital has existed from two infrastructure investments in Angola, delivering an IRR of over 24% for the fund’s investors in these two projects.

Vital divested from the Sumbe-Gabela-Waku Kungo (SGWK) electricity transmission project and the Water For All (WFA) water project.

Dan Schonfeld, Head of Finance at Vital Capital Fund, said that in both cases the financing provided was in the form of short-term mezzanine funding.

“Consequently, the exits were affected through the repayment of the principle provided and interest agreed per the pre-agreed schedule,” he told Africa Global Funds.

Vital invested in both projects in 2014, providing $31.7m of funding to SGWK and $21.9m to WFA.

Vital was instrumental in making sure these two key infrastructure projects were executed on schedule and at the required level of quality, including the implementation of appropriate environmental, social and governance guidelines to ensure the projects delivered the desired impact for the benefit of the Angolan population.

The Sumbe-Gabela-Waku Kungo transmission line project, which involved rolling out 330 km of electricity lines, expanded the Angolan national electricity transmission network into rural areas, enabling a greater number of households, as well as factories, water systems, schools and medical facilities, access to grid-provided electricity.

By connecting over 1.3 million Angolans living in remote villages to the national electricity grid, the project was also able to replace inefficient and costly diesel-powered generation with a reliable source of power generated from clean renewable sources.

The Water For All project was undertaken to provide clean potable water distribution systems to over 150 remote, rural communities, with an expected positive effect beginning at the individual level through the village and all the way to the overall economy.

Once finished, over 500,000 people in remote areas will gain access to 1.3m liters of clean purified drinking water per day.

When asked about forthcoming exits, Schonfeld said: “Our next exit is not projected to occur before 2016.”

Vital Capital Fund is a $350m private equity fund that invests in opportunities which simultaneously enhance the quality of life of communities in rapidly developing nations, primarily in Sub-Saharan Africa, while also delivering attractive financial returns for investors.

Vital’s primary investment interest is the development of infrastructure.

Vital broadens its investment prospects by focusing on urban, large-scale, community-integrated housing concepts and initiating fully integrated agro-industrial solutions, as well as giving particular emphasis to education and healthcare.

In addition to these important sectors, the fund also seeks to invest in other large-scale infrastructure projects of national importance.