IPDEV 2 REACHES ITS FINAL CLOSING WITH SUPPORT FROM LEADING IMPACT INVESTORS
Following a first closing at €9.5 million in October 2015, IPDEV 2 realized its final closing at €11.5 million, bringing its equity to €21 million. This final closing brings together seven new investors, including individuals, private and institutional investors (African Development Bank, Ceniarth, BNP Paribas, Soros Economic Development Fund) and two investors already present in the first closing, the Adolf H Lundin Charitable Foundation and FISEA, the Investment and Support Fund for Businesses in Africa managed by Proparco.
“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” says 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”, notes Manuel Costescu from the Soros Economic Development Fund, a part of the Open Society Foundations.
In addition to its own €21 million investment capacity, IPDEV 2 has raised €15 million 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.
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