DPI Raises One of Africa’s Largest Funds to US $ 900 Million to Invest in Innovation-Driven Companies | National company
LONDON – (BUSINESS WIRE) – October 4, 2021–
Development Partners International (DPI), a leading investment firm focused on Africa, today announced that the African Development Partners III Fund (ADP III) has exceeded its target of $ 800 million and is expected to close definitely $ 900 million, with an additional $ 250 million in dedicated co-investment capital. This brings a total of $ 1.15 billion for investments on the continent. The fundraising makes ADP III one of the largest funds dedicated to global capital investment in Africa.
ADP III will invest in established and growing businesses in sectors that benefit from the rapidly growing African middle class and the continent’s increasing digital transformation. All investments have the highest environmental, social and governance (“ESG”) impact and labor standards. To do this work, DPI uses its proprietary DPI Management System (“DPIMS”) toolkit to deliver impact in line with 10 of the United Nations Sustainable Development Goals, as well as to apply the highest ESG standards.
Runa Alam, Co-Founder and Managing Director of DPI, said: “Africa remains an exciting investment destination with positive demographics, growing adoption of technology, and rising consumer and business spending. Against this backdrop, DPI has continued to generate top quartile returns by leveraging the deep-rooted local expertise of our team across the African continent.
“As we look to the future with our ADP III fund, we will focus on companies driven by innovation and leading the digital transformation of the economies in which they operate. Additionally, our deep integration of impact and ESG initiatives into the investment lifecycle has been widely recognized and ensures that we are known as a trusted partner.
ADP III has raised capital from a wide range of leading pension funds and sovereign wealth funds, development finance institutions, endowments and foundations, insurance companies, funds of funds , asset managers and impact investors. The global investor base represents 20 countries across North America, Europe, the Middle East and Africa. In addition to strong support from existing investors, DPI has welcomed over 25 new LPs to its investor base. This is a testament to DPI’s track record and its ability to create institutional quality investment opportunities in Africa, while continuing to have a sustained environmental and economic impact.
Joanne Yoo, Managing Director of DPI, said: “The strong support given to ADP III validates our strategic direction, our creative approach and our investment discipline. We are grateful for the confidence our investors have placed in IPR, and we are confident that our talented team will continue to deliver competitive returns and impact. “
ADP III has made four investments to date, including:
- Channel VAS, a leading global financial technology company providing mobile financial services;
- SICAM, one of the main Tunisian tomato producers, in one of the largest private equity operations carried out in the country;
- Kelix Bio, a biopharmaceutical platform expanding access to generic specialty drugs across Africa; and
- MNT-Halan, the first Egyptian fintech ecosystem.
In addition, DPI has a large portfolio of investment opportunities across the continent, focused on key sectors of the economy such as financial services, healthcare, agribusiness, education. and telecommunications infrastructure.
DPI focuses on promoting the best ESG standards through its investments, with the aim of creating high-performing institutionalized companies at exit. Working with the companies in its portfolio, DPI seeks to contribute to the United Nations Sustainable Development Goals by implementing its proprietary Impact Management and ESG system based on three key impact themes: quality employment, climate change and gender balance.
ADP III was the first African fund to sign the Operational Principles for Impact Management (“Impact Principles”), an international market standard for impact investing and the first to achieve 2x Flagship status. Fund, as part of the 2x Challenge, a lens initiative.
PJT Park Hill acted as advisor and placement agent for ADP III, and Debevoise & Plimpton LLP acted as legal advisor for the Fund.
Notes to Editors
DPI is a leading Africa-focused investment firm that has successfully advised funds through ‘up’ and ‘down’ cycles. Its top two funds, African Development Partners I and II (ADP I and ADP II), are ranked in the first quartile for performance by Cambridge Associates.
DPI has $ 2.8 billion in assets under management through its funds and committed co-investments.
The strategy of the ADP funds is to build a diversified pan-African portfolio of private equity investments in established and growing companies benefiting from the rapid growth of the middle class, innovation and digital transformation of the continent.
Since the creation of DPI in 2007, its funds have invested in 23 portfolio companies in 29 African countries and 17 industries. ADP portfolio companies employ more than 49,000 people. During DPI’s investment, 18,000 jobs were created.
In 2020, ADP III became the first 2X Flagship Fund, as part of the 2X challenge, committing to mainstreaming a gender perspective into its investment process, and reflecting DPI’s long-standing commitment to gender equity. DPI has a co-founder and CEO, a third of the partners are women and 50% of the firm are women.
As a signatory to the United Nations Principles for Responsible Investment (PRI) and Operational Principles for Impact Management, DPI promotes high ESG and impact standards and seeks to contribute to the United Nations Sustainable Development Goals. United. This includes the development of an innovative impact management and ESG system focusing on the following key impact themes:
Job quality: SDG 8
Climate change: SDG 13
Gender balance: SDG 5
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SOURCE: Development Partners International (DPI)
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PUB: 04/10/2021 02:30 / DISC: 04/10/2021 02:32