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The Board of Directors of the African Development Bank Group (AfDB) has approved US$11 million equity investment in BluePeak Private Capital Fund to advance its goal of supporting mid-size firms across Africa.
BluePeak, a flagship private capital fund domiciled in Luxembourg, will provide growth capital to middle-sized companies with the potential to become pan African market leaders.
The investment advances the Bank’s goal of supporting mid-size firms, including in the pharmaceuticals, agribusiness, manufacturing, and logistics sectors, across Africa.
According to a statement issued on Sunday, the fund will target adding value to portfolio companies by enabling their expansion, recapitalization, and deleveraging.
“It is expected to make at least eight investments of $8 million to $25 million in companies with established cash flow generation.
“By investing in BluePeak, the African Development Bank will support an indigenous fund manager with a strong knowledge of African markets to invest in underserved small and mid-size companie,” the statement indicated.
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Walid Cherif, co-founder of BluePeak Private Capital, said: “The commitment of the African Development Bank to our flagship fund is a strong sign of confidence in our strategy of supporting impactful businesses in Africa.
“Small and Medium Enterprises (SMEs) in Africa are still facing financing challenges as a result of several macroeconomic setbacks. BluePeak was founded to fill part of this financing gap.”
As seven of the portfolio firms operate in rural areas, the investment will also serve women and other vulnerable members of communities, particularly in agribusiness.
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