By Jeph Ajobaju, Chief Copy Editor
BluePeak Private Capital has raised more than $100 million for BluePeak Private Capital Fund SCSp (the Fund), its flagship private credit and mezzanine fund, to achieve its dream of an alternative investor focused on Africa.
The Fund targets a final close of $200 million with a hard cap of $250 million.
Its initial closing is backed by leading African investors, including
- CDC Group
- UK’s development finance institution and impact investor
- European Investment Bank
- European Union’s bank
- DFC, the US Development Finance Corporation
- FMO, the Dutch entrepreneurial development bank
- “Caisse des Dépôts et Consignations” CDC Tunisia
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Areas to be impacted
Nairametrics reports that the beneficiaries will include small and mid-market firms and African private equity sponsors operating with between $10 million and $80 million, non-cyclical growth sectors, and competent management teams.
BluePeak will proactively seek areas where good impacts may be made, in addition to a strong focus on ESG in every investment.
“SMEs in Africa are still facing financing challenges despite their critical role in the growth and stability of African economies,” said Adam Hadidi, BluePeak Private Capital co-founder and Managing Director.
“The Covid-19 crisis made the needs more substantial and the opportunity to support great businesses undeniable.
“Asset-light companies which operate in attractive sectors still find it difficult to obtain financing from the traditional credit markets, even when they have a good track record of financial performance and numerous opportunities for growth.
“BluePeak was founded to fill this market gap and provide growth capital through a variety of bespoke debt instruments, including mezzanine finance, preferred equity, convertibles and senior debt for companies operating in Africa and the Levant region.”
The Fund is projected to make investments ranging from $10 million to $25 million throughout its 10-year term.
Below are the views of others connected with the deal:
Walid Cherif (BluePeak Private Capital co-founder and Managing Director)
“I am particularly delighted and pleased to have reached this important milestone for BluePeak. It’s quite an achievement for a firm that was launched less than two years ago.
“The quality of investors who supported us and led the first close of this flagship fund is a testament to the strong experience and operational setup of BluePeak and its team.”
Nejia Gharbi (CDC Tunisia acting Managing Director)
“As a long-term impact investor, CDC Tunisia seeks, through its investments, to support all forms of financing to SMEs.
“BluePeak’s strategy fits well with this logic by providing the capital needed by SMEs and also by the Tunisian economy.
“By its commitment to the Fund, CDC Tunisia believes that a new perspective is opening up to SMEs which deserve all the support available.”
Alison Klein (FMO Private Equity Manager)
“We are proud to support this high-quality team in raising their first fund under the BluePeak banner.
“Mezzanine finance has an important role to play in closing the funding gap experienced by growth companies in Africa, which has been exacerbated by the COVID pandemic.
“This partnership with BluePeak is aligned with our mission of empowering entrepreneurs to build a better world.”
Stephen Priestley (CDC Group Managing Director, Head of Financial Services)
“Our landmark commitment to BluePeak provides a new opportunity to address the credit shortage for businesses across Africa, in the midst of the pandemic.
“CDC is pleased that our anchor role in BluePeak’s inaugural fund, combined with partnership with fellow DFIs, will provide necessary growth capital to mid-sized companies across key markets in Africa – offering critical support that will facilitate increased job growth, stimulate productivity and enhance economic rebuild on the continent.”
Thomas Östros (European Investment Bank Vice President)
“Cooperation between private and public investors to accelerate high-impact private sector investment across Africa is crucial to enable African entrepreneurs to harness new opportunities and tackle the exceptional health, social and economic challenges posed by COVID-19.
“The European Investment Bank is pleased to join forces with BluePeak Private Capital and provide USD 30 million for their innovative new fund that will address the growth capital investment gap holding back expansion of African business and job creation.
“Our first partnership with BluePeak Private Capital builds on the EIB’s 55-year track record of supporting private and public investment across the continent and record EIB engagement in Africa last year, as part of Team Europe’s rapid health and economic resilience response to the pandemic.”