Development Partners International (DPI), a UK-based private equity firm that invests in Africa, has raised $900m to invest in companies on the continent.
The firm exceeded its initial target of raising $800m for its African Development Partners III Fund (ADP III) by $100m and also secured an additional $250m of capital from co-investors who will invest alongside this, its third Africa-focused fund, taking the total firepower of the ADP III to $1.15bn. DPI’s capital base across all three of its Africa-focused investment funds, including money committed by co-investors, totals $2.8bn.
ADP III will invest in established and growing companies in industries that benefit from the continent’s rapidly expanding middle class as well as its increasing embrace of the digital economy. The firm says all its investments will be done in line with 10 of the UN Sustainable Development goals and will strive to achieve the highest environmental, social and governance (ESG) standards.
“Africa remains an exciting investment destination with positive demographics, rising adoption of technology, and rising consumer and business spending,” said Runa Alam, co-founder and CEO of DPI. “With ADP III we will focus on innovation-driven companies leading the digital transformation of the economies in which they operate.”
DPI raised the capital for ADP III from both pension and sovereign wealth funds as well as development finance institutions, endowments and foundations, insurance companies, asset managers and impact investors. The investors behind the fund hail from 20 countries across North America, Europe, the Middle East and Africa.
ADP III has made four investments to date, including Channel VAS, a Pan African fintech business providing mobile financial services; SICAM, a Tunisian tomato producer; Kelix Bio, a Dubai-based biopharmaceutical platform with origins in Zanzibar; and MNT-Halan, Egypt’s leading fintech ecosystem.
The private equity firm says it has a significant pipeline of investment opportunities across Africa in sectors such as financial services, healthcare, agribusiness, education and telecommunications infrastructure.
DPI’s website also lists SA logistics company RTT and online retailer HomeChoice among the portfolio of companies in which it has invested.
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