Jean-Michel Severino, President of Investisseurs & Partenaires.
The funding firm I&P Développement 2 (IPDEV 2), managed by Investisseurs & Partenaires, an skilled fund supervisor devoted to African SMEs, reached its final closing and totalizes an funding capability of €21 million, exceeding its preliminary target. With the assist of long-term dedicated traders, including the African Development Bank and Soros Economic Development Fund, IPDEV 2 shall be ready to attain its mandate: coaching, sponsoring and launching ten impact funds in Sub-Saharan Africa. Five impact funds have already been launched in Burkina Faso, Côte d’Ivoire, Madagascar, Niger and Senegal.
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 fairness to €21 million. This final closing brings collectively seven new traders, including people, personal and institutional traders (African Development Bank, Ceniarth, BNP Paribas, Soros Economic Development Fund) and two traders already current within 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 on 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, part of the Open Society Foundations.
In addition to its personal €21 million funding capability, IPDEV 2 has raised €15 million from African co-investors, who put money into the African funds. Finally, IPDEV 2 is also a blended finance program: a €19m grant program has been secured overlaying a Technical Assistance Facility for SMEs as effectively Seed Funding for SMEs and start-ups.
LAUNCH OF FIVE MORE IMPACT FUNDS IN THE COMING YEARS IN SUB-SAHARAN AFRICA
Since its inception 3 years in the past, IPDEV 2 has launched 5 African impact funds: Teranga Capital in Senegal, Comoé Capital in Côte d’Ivoire, Miarakap in Madagascar, Sinergi Burkina in Burkina Faso, Sinergi Niger in Niger. Together they’ve already financed 27 early-stage SMEs in fairness and seed funding and raised €15m in local and worldwide capital.
IPDEV 2 will sponsor one other 5 impact funds within the coming years in West, Central and East Africa. IPDEV 2 companions with every impact fund supervisor by bringing capital, instruments, teaching and a community of African and worldwide mentors, traders and entrepreneurs. IPDEV 2 shall be deciding on 5 extra dedicated and gifted first-time funding groups to handle the following 5 funds.
The overarching goal pursued by IPDEV 2 is to finance promising African start-ups and early-stage companies. Despite their appreciable progress and impact potential, multiple African SMEs remain uncared for by the monetary sector as they’re pricey to get to and face stronger boundaries in elevating funds. In the approaching decade, the funds sponsored by IPDEV 2 will purpose to bypass these boundaries and finance as much as 500 early-stage SMEs in ten international locations, with funding wants between €20,000 and €500,000.
“With IPDEV2, I&P expands the reach of impact investing to the most early-stage entrepreneurs and start-ups on the continent. At the same time, IPDEV2 also connects the ecosystem of African investors to the most promising SMEs with the highest professional standards of equity investment” explains Jean-Michel Severino, CEO of Investisseurs & Partenaires. Through this revolutionary mechanism, IPDEV 2 contributes to selling the emergence of recent champions of African entrepreneurship in addition to constructing a neighborhood of funding professionals throughout the continent.
ABOUT INVESTISSEURS & PARTENAIRES
Investisseurs & Partenaires is an impact funding group devoted to African Small and Medium Enterprises. Since its creation in 2002, I&P has invested in additional than 90 companies, situated in 16 African international locations and working in numerous sectors of exercise (health, transport, microfinance…). These enterprises create local added worth and long-term employment, and generate vital social, environmental and governance impact.
I&P supplies capital, technical and strategic assist to satisfy the expansion wants of its portfolio companies. The team develops lengthy term partnerships with entrepreneurs, sharing administration experience and data that’s helpful for bettering business technique, structuring, and success. I&P manages 4 pan-African funds – IPDEV 1, IPDEV 2, IPAE 1 and IPAE 2, which signify a complete of €135 million – and sponsors 5 African impact funds – Comoé Capital (Côte d’Ivoire), Miarakap (Madagascar), Sinergi Burkina, Sinergi Niger and Teranga Capital (Senegal).
Created by Patrice Hoppenot in 2002 and headed by Jean-Michel Severino since 2011, the I&P team includes about forty collaborators in Paris and in its seven African places of work in Burkina Faso, Cameroon, Côte d’Ivoire, Ghana, Madagascar, Niger and Senegal.
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