French-African Fund 2 completes final close at over €50 million

French-African Fund 2 completes final close at over €50 million

Published: 19-04-2023 13:45:00 | By: Pie Kamau | hits: 3091 | Tags:

AfricInvest announced a final close of the French African Fund II (FFA II), the successor fund to the French African Fund (FFA), having raised over €50 million of subscriptions from French and international institutional investors, including private investors, as well as family offices.

The fund is managed by AfricInvest Europe, part of AfricInvest Group, and is led by a dedicated team. The FFAs are the first cross-border funds dedicated to French small and medium-sized enterprises (SMEs) that aim to invest and grow in Africa. The Funds’ vision is to accelerate the growth of these SMEs through development projects on the continent and beyond.

Stéphane Colin, Managing Partner, AfricInvest Europe: "We are delighted with this milestone for the French African Funds. Many current investors have reiterated their confidence in us and new investors have been convinced by our unique investment thesis.”

FFA II was initially launched in January 2021 as a successor to FFA, which invested in eight French SMEs and Intermediate-Sized Enterprises (ETIs) with a link to Africa. FFA II received the backing of several repeat investors from FFA (including Bpifrance, Proparco, Société Générale, Sanlam, the pan-African insurer, as well as the Central Bank of Kenya Pension Fund), and welcomes a number of new French and African institutional investors including (BNP Paribas, Mauritius Commercial Bank, and Mauritian insurer Sicom) as well as several new European and African family offices.

Khaled Ben Jennet, Managing Partner, AfricInvest Europe: “Today the French African Funds have a unique and differentiating investment strategy in the French Private Equity Small and Mid-Cap market. They bring real additionality for each portfolio company, particularly for their African development.”

FFA II invests in profitable, innovative and fast-growing French SMEs possessing strong development potential and financial strength, with a turnover between €20 million and €300 million. The strategy targets the SME segment in France with equity tickets between €2 million and €6 million, via high value-added minority investments in majority or minority transactions. These investments are conducted alongside French and foreign private equity funds or directly with the founders and family executives.

As of the end of 2022, FFA II had closed seven investments in various sectors, such as health, public lighting, packaging, water management, geotechnics, distribution and inheritance services. Combined with the eight investments of the FFA, AfricInvest Europe is bringing additionality to a total of 15 French SMEs: AfricInvest Europe aims to support investee companies through its experience, financing capabilities, extensive network and the expertise of its teams in France and Africa in an effort to help them accelerate their growth and access new markets.

It also looks to facilitate partnerships with relevant commercial, financial, industrial and technological partners in each market. In addition to financial returns, FFA II will focus on the impact of its investments on companies’ governance, transparency, employment creation and respect for social and environmental value. AfricInvest Europe benefits from the unique positioning of the AfricInvest Group, a leading investment platform with a proven track record of 30 years and over $2 billion in funds.

www.africinvest.com