Tuesday, March 26, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > Fundraising

IPDEV 2 reaches final closing

Anna Lyudvig
Oct. 1, 2018, 9:32 p.m.

Word count: 581

I&P Développement 2 (IPDEV 2), a fund managed by Investisseurs & Partenaires, has reached its final closing at €11.5m and totalised an investment capacity of €21m.

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I&P Développement 2 (IPDEV 2), a fund managed by Investisseurs & Partenaires, has reached its final closing at €11.5m and totalised an investment capacity of €21m.

This final closing brings together seven new investors, including individuals, private and institutional investors (African Development Bank, Ceniarth, BNP Paribas, Soros Economic Development Fund).

In addition, two investors already present in the first closing (in October 2015), the Adolf H Lundin Charitable Foundation and FISEA, the Investment and Support Fund for Businesses in Africa managed by Proparco, have participated in the final round.
“IPDEV 2 is the first impact investing projects of this kind supported by the African Development Bank. Not only does it allow small and early-stage enterprises to access capital, but it also strongly focuses on the capacity building of African investment teams: IPDEV 2 paves the way to extend the reach of impact investing in Sub-Saharan Africa,” said Stefan Nalletamby, Director of the Financial Sector Development Department at the AfDB. 
“IPDEV 2 has a proven track record of helping to catalyze early-stage entrepreneurship in Africa through its mentorship of local investment teams. These teams are deeply rooted in their communities, and are best positioned to allocate resources into SMEs that are otherwise excluded from the formal financial system. These SMEs increase economic opportunities for the vulnerable populations we seek to reach”, added Manuel Costescu from the Soros Economic Development Fund, a part of the Open Society Foundations.
In addition to its own €21m investment capacity, IPDEV 2 has raised €15m from African co-investors, who invest in the African funds. 

Finally, IPDEV 2 is also a blended finance program: a €19m grant program has been secured covering a Technical Assistance Facility for SMEs as well Seed Funding for SMEs and start-ups.
Since its inception three years ago, IPDEV 2 has launched five African impact funds: Teranga Capital in Senegal, Comoé Capital in Côte d’Ivoire, Miarakap in Madagascar, Sinergi Burkina in Burkina Faso, Sinergi Niger in Niger. Together they have already financed 27 early-stage SMEs in equity and seed funding and raised €15m in local and international capital.
IPDEV 2 will sponsor another five impact funds in the coming years in West, Central and East Africa. 

IPDEV 2 partners with each impact fund manager by bringing capital, tools, coaching and a network of African and international mentors, investors and entrepreneurs. 

IPDEV 2 will be selecting five additional committed and talented first-time investment teams to manage the next five funds.

The overarching goal pursued by IPDEV 2 is to finance promising African start-ups and early-stage businesses. 

Despite their considerable growth and impact potential, many African SMEs remain neglected by the financial sector as they are costly to reach and face stronger barriers in raising funds. 

In the coming decade, the funds sponsored by IPDEV 2 will aim to circumvent these barriers and finance up to 500 early-stage SMEs in ten countries, with investment needs between €20,000 and €500,000.

Jean-Michel Severino, CEO of Investisseurs & Partenaires, said: “With IPDEV 2, I&P expands the reach of impact investing to the most early-stage entrepreneurs and start-ups on the continent. At the same time, IPDEV2 also connects the ecosystem of African investors to the most promising SMEs with the highest professional standards of equity investment.” 

“Through this innovative mechanism, IPDEV 2 contributes to promoting the emergence of new champions of African entrepreneurship as well as building a community of investment professionals across the continent,” he added.

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