AFRICA – Dutch development bank FMO has invested US$25m in African Development Partners III, a pan-African fund managed by Development Partners International (DPI), targeting established and growing consumer-focused companies in the food & agriculture, manufacturing and other sectors.
“The investment fits FMO’s strategy, deepening a relationship with an existing partner in African private equity investing and contributes further to FMO’s ambition of being a preferred partner for growth in emerging markets,” FMO said.
FMO had previously invested in DPI’s first fund, African Development Partners I. DPI is now raising its third fund: African Development Partners III (ADP III) which is expected to invest US$40 – US$120m in 8 – 14 different companies.
ADP III will contribute to the creation of value within its investees and the positive impact they have on their local communities, creating more jobs and increasing government tax revenues as well as broadly fostering regional economic integration.
Established in 2007, DPI now manages US$1.1 billion in assets under management (AUM) and has invested in 20 portfolio companies across its two funds, ADP I, and its successor fund, African Development Partners II (ADP II).
Its strategy is to build a diversified pan-African portfolio of private equity investments in established and growing companies benefiting from Africa’s fast-growing, middle class.
DPI has more than 35 members of staff, of which 40% are women, and its investment team is 100% African. They also have a dedicated Portfolio Management team that works closely with the management’s teams of its investees.
According to FMO, DPI has a strong environment and social management system in place, “DPI also has an experienced and dedicated ESG manager in its team. DPI undertakes rigorous ESG due diligence during its investment process and creates ESG action plans for its portfolio companies to align them with the IFC Environmental and Social Performance Standards.”