CardinalStone Capital Advisers (CCA), a West Africa-focused private equity fund manager, has reached a first close of $76 million for its second fund, CCA Growth Fund II.

The fund will build on the strategy of its predecessor, CCA Growth Fund I, which focused on helping high-growth small and medium-sized enterprises (SMEs) expand into regional businesses.

CCA Growth Fund II will target investment opportunities across West Africa, with Nigeria, Ghana, Côte d’Ivoire and Senegal serving as anchor markets. The fund is 2X qualified and will focus on investments supporting shared prosperity, equity and environmental sustainability.

The first close attracted investors from Africa and international markets, with significant participation from domestic pension funds and asset managers.

The International Finance Corporation (IFC), British International Investment (BII) and SCM Capital, which invested in the first fund, returned for the second vehicle. They were joined by new investors including the Dutch Good Growth Fund and CardinalStone Partners, alongside Nigerian pension funds Stanbic IBTC Pension Managers, Access ARM Pensions and FCMB Pensions.

Farid Fezoua, Director for Equity, Funds, and Venture Capital at IFC, said the investment would help address the shortage of long-term capital available to SMEs in West Africa.

“Small and medium enterprises are the engine of job creation in West Africa, yet far too many still lack access to the long-term capital they need to grow,” Fezoua said. He added that the investment would connect high-potential businesses with capital and support to scale, create jobs and expand economic opportunity.

The strong participation from domestic institutional investors comes as development finance institutions increasingly seek to mobilise local capital alongside international investment.

Sara Taylor, Director and Head of Private Equity Funds and Co-Investments at BII, said mobilising domestic and international private capital was central to the institution’s new strategy.

“The launch of the CCA Growth Fund II provides another milestone in demonstrating how DFIs can work with private institutions to drive investment where it is most needed,” Taylor said.

CCA is led by Partners Femi Ogunjimi, Yomi Jemibewon and Shirley Somuah. The partners said the first close would allow the firm to continue investing in entrepreneurs and businesses with the potential to scale across the region.

“CCAGF II will allow the entire CCA team to continue to make impactful investments that deliver superior returns,” they said.

CCA’s first fund made commitments to seven SMEs, which the manager said contributed to more than 8,000 jobs and supported a further 1,000 SMEs across their respective value chains.

The second fund will build on that portfolio by targeting businesses addressing what CCA describes as key development priorities across West Africa, while seeking to generate financial returns for its institutional investor base.