Paris-based Investisseurs & Partenaires, a family of impact investment funds backing small and medium-sized businesses mainly in West Africa, has secured €41 million ($47.6 million) in the first close of its third I&P Afrique Entrepreneurs fund, or IPAE 3.
The fund blends several levels of debt with technical assistance. Repeat investors include European Investment Bank and Bpifrance alongside the West African Development Bank. Proparco’s FISEA initiative, which backs West African small businesses directly and via funds, provided a €7 million catalytic junior tranche to enhance the fund’s risk-return profile.
The French Ministry for Europe and Foreign Affairs and the European Union via FISEA will provide €1.2 million for technical support.
Catalytic capital
I&P says that in its previous fund, “Each euro invested mobilized an additional 2.2 euros.” That fund closed at €75 million in 2019 and backed close to 30 startups and small businesses improving access to essential goods and services in agriculture, energy, health and others. The portfolio includes Mali Shi, a shea processor in Mali; AerialMetric, which supplies medical goods in Madagascar’s landlocked areas using drones; and Senegalese water and sanitation company, Delta SA. €146 million has been invested in 56 small businesses from the two preceding funds, with nearly 20 exits achieved.
IPAE 3 is looking to raise €70 million, providing equity and quasiequity of between €1 million to €5 million for up to 20 small businesses. Up to 60% of the portfolio will provide direct climate mitigation or adaptation solutions.
