Bpifrance and Proparco have announced the first closing of their fourth fund of funds for Africa, known as Averroès Africa. With a target size of 100 million euros , Averroès Africa will invest in African funds dedicated to startups and small and medium-sized enterprises, to continue supporting the development of the private sector, employment and innovation on the continent.
“We are very happy to launch this fourth vehicle with Proparco, almost twenty years after the start of our investment activities in Africa. His broad investment thesis will allow us to further diversify our portfolio and seize as many opportunities as possible, particularly in new promising technological segments,” Nicolas Dufourcq, CEO of Bpifrance said. “This launch is being carried out as Africa faces new major challenges: the covid-19 crisis, which requires reinforced support for small and medium-sized enterprises in order to maintain activity and employment, as well as climate change, for which Africa is at the forefront. Averroès Africa will help, we hope, to meet these challenges ”.
Here Is What You Need To Know
- The Averroès system was launched in 2003 by Bpifrance and Proparco to support the development of the private equity market first in North Africa and then throughout the continent with the launch of a first pan-African vehicle (Averroès Finance III) in 2015.
- Building on the success of this pioneering fund-of-funds system which has enabled nearly 1.2 billion euros to be channeled into around twenty private equity funds and more than 150 companies in 40 African countries, Bpifrance and Proparco wished to continue their collaboration by launching a new vehicle — Averroès Africa.
- Averroès Africa, like its predecessors, is open to the subscription of public and private third-party investors, French and foreign, who will complete the first closing round table, for an amount of 55 million euros, in order to reach the target size of 100 million euros.
- Averroès Africa will take up the investment thesis of Averroès Finance III by targeting multi-sector private equity funds, with a multi-country, regional or pan-African dimension, and managed by experienced teams. Averroès Africa will have an increased tropism for venture capital funds and, for the first time, it will be able to invest in sector funds in financial services, health and agribusiness, in line with market developments. African.
- With a target of 10 to 12 funds in the portfolio, Averroès Africa will ultimately offer exposure to more than a hundred African companies, from startups to mid-size companies, in all the major sectors linked to the emergence of African middle class, such as consumer goods, transport and logistics, industry, education or TMT.
- Beyond financial performance, the Averroès Africa team will be keen to maximize the impact of its investments in environmental, social and governance matters, in line with the commitments made by Bpifrance and Proparco.
- The team will also seek, as for the predecessor vehicles, to generate business flows between African companies in the portfolio and French companies supported by Bpifrance and eager to seize the opportunities offered by the African market.
“The launch of the 4th Averroès fund of funds demonstrates the growing ambition of the partnership between Proparco and Bpifrance. This new vehicle aims to mobilize and direct public and private capital towards some of the most dynamic and impactful sectors in Africa. AFD and Proparco’s experience, tools and network of partners on the continent make them key players in the financing of start-ups, VSEs and SMEs on the continent. We are indeed convinced that the resilience and development of the continent depend in particular on the support of African companies and entrepreneurs. It is with this in mind that we have further increased our support for them with more than 2 billion euros already committed since 2018 as part of the French Choose Africa initiative,” Gregory Clemente, Managing Director of Proparco said.
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About Proparco
A subsidiary of AFD dedicated to the private sector, Proparco has been working for 40 years to promote sustainable development in economic, social and environmental matters. Proparco participates in the financing and support of companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure with a focus on renewable energies, agro-industry, financial institutions, health, education … Its interventions aim to strengthen the contribution of private actors the achievement of the Sustainable Development Goals (SDGs), adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to the creation of jobs and decent income, the supply of goods and essential services, as well as the fight against climate change. More information: www.proparco.fr and @Proparco
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer