CDC Group has announced its first investment in two vehicles in Africa managed by Vantage Capital and BluePeak that assist the growth of African enterprises in the private sector as part of its objective to help intermediate businesses in Africa.

The CDC Group, a development finance company based in the United Kingdom, has pledged $60 million to two Africa-focused investment funds. The first half of this sum was put into Vantage Mezzanine Fund IV, a vehicle run by Vantage Capital, a mezzanine fund manager. BluePeak Private Capital Fund I, a vehicle managed by BluePeak, received the other half.

“These commitments will allow fund managers to increase lending to African mid-market companies by providing tailor-made financing that meets market needs,” CDC Group said in a statement.

The group’s first investment as part of the African Private Credit Fund Strategy is this initiative. This newly established strategy aims to support the growth of African intermediary companies and attract investors to the continent’s markets.

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CDC Group seeks to support the growth of medium-sized businesses by deploying a variety of financial instruments. These businesses generally struggle to obtain the capital they need to expand their operations.

The arrival of covid-19 having further tightened the availability of capital on African markets, the British investor believes that it is playing a major role for the benefit of the private sector.

The partnership with BluePeak and Vantage Capital will extend to other fund managers who engage alongside mid-size companies in Africa.

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