DPI raises $1.15 billion to fund innovation-led companies in Africa
Premier African investment firm, Development Partners International (DPI), has announced its success in raising a total of $1.15 billion through its African Development Partners III Fund (ADP III) to invest in innovation-led companies on the Continent.
According to the investment firm, its ADP III Fund exceeded its $800 million target, and is set to hold a final close at $900 million, with an additional $250 million of dedicated co-investment capital bringing the total amount to $1.15 billion for investments in Africa.
The ADP III Fund, DPI notes in a press statement, will be invested in established and growing companies in industries that benefit from Africa’s fast-growing middle class and the increasing digital transformation of the continent.
Co-founder and Chief Executive of DPI, Runa Alam commenting on the funds raised said, “Africa remains an exciting investment destination with positive demographics, rising adoption of technology, and rising consumer and business spending. Against this backdrop, DPI has continued to generate top quartile returns by leveraging our team’s deep-rooted local expertise across the African continent.
“As we look towards the future with our ADP III fund, we will focus on innovation-driven companies leading the digital transformation of the economies in which they operate. In addition, our deep integration of impact and ESG initiatives in the investment life cycle has been widely recognised and ensures we are known as a trusted partner.”
Managing Director at DPI, Joanne Yoo, also remarked, “The strong support for ADP III validates our strategic focus, creative approach and investment discipline. We are grateful for the trust that our investors have placed in DPI, and we are confident that our talented team will continue to deliver competitive returns and impact.”
Also: African Capital Alliance acquires 31% stake in Food Concepts Plc
The ADP III Fund secured capital from a broad range of leading pension and sovereign wealth funds, development finance institutions, endowment and foundations, insurance companies, fund-of-funds, asset managers, and impact investors. The global investor base represents 20 countries across North America, Europe, Middle East and Africa.
In addition to strong support from existing investors, DPI welcomed over 25 new LPs into its investor base. This is testament to DPI’s track record and ability to create institutional-grade investment opportunities in Africa, while continuing to deliver sustained environmental and economic impact.
ADP III has made four investments to date, including:
- Channel VAS, a leading global fintech business providing mobile financial services;
- SICAM, a leading Tunisian tomato producer, in one of the largest private equity transactions undertaken in the country;
- Kelix Bio, a biopharmaceutical platform broadening access to speciality generic drugs across Africa; and
- MNT-Halan, Egypt’s leading fintech ecosystem.
Additionally, DPI has a significant pipeline of investment opportunities across the continent, focused on key sectors of the economy such as financial services, healthcare, agri-business, education, and telecom infrastructure.
ADP III was the first African fund signatory to the Operating Principles for Impact Management (“Impact Principles”), an international market standard for impact investing and the first to be granted 2x Flagship Fund status, as part of the 2x Challenge, a gender-lens initiative.
DPI places an emphasis on promoting best in class standards in ESG through its investments, with the aim of creating institutionalised high-performing companies at exit. Working with its portfolio companies, DPI seeks to contribute to the UN Sustainable Development Goals by implementing its proprietary Impact and ESG Management System based on three key impact themes: Job Quality, Climate Change, and Gender Balance.
