African Development Partners IV, L.P.

Customer

ADP IV is the fourth private equity fund managed by Development Partners International LLP (DPI). DPI is an established private equity firm that invests across Africa since 2008. Over this period, the Fund Manager has successfully deployed over USD 2.8 billion in 35 portfolio companies.

Funding Objective

The fund provides growth capital to mid-size companies across Africa in diverse industries such as healthcare, education, FMCG, retail, financial services, transport and logistics. DPI is emphasizing impact and value creation through a hands-on investment strategy that contributes to the implementation of best practices. Im-provement of corporate governance as well as environmental and social standards according to IFC Perfor-mance Standards are focus areas.

Reasons for financing

The transaction is expected to contribute to the following Sustainable Development Goals (SDGs) in particular:

  • Climate (SDG 13): Investments are aligned with DEG’s climate strategy. DEG will support DPI on its road toward carbon neutrality.
  • Employment & job quality (SDG 8 & 10): The Fund invests in businesses that contribute to the crea-tion and safeguarding of decent jobs in lower-middle income countries. In addition, the Fund supports the Investee Companies to grow in a way to create jobs for diverse group of people, including those who previously may have been not be able to access the job market.
    The fund invests in mid-sized enterprises with high growth potential that lack access to equity finance. In addition to financing, the Fund provides institutional support on matters like environmental and social standards, corporate governance, human resource management and know how transfer.
  • Corporate Governance and E&S Standards (SDG 13 and 5): The Fund is committed to improve corporate governance and environmental and social standards. The fund complies with IFC Perfor-mance Standards. In addition, ADP IV intend to increase female presence at all levels of business and implement women’s empowerment plans.

As an anchor investor at initial close, DEG is seen as a signal investor. Thus, DEG supports mobilizing additional, especially private capital to mid-sized companies in Africa, supports low and lower-middle income countries and generally makes a contribution to an increased efficiency and a sustainable development of the African economies. Furthermore, DEG will support the Fund indirectly through co-investments in investee companies of the fund. 

The investment is in line with DEG’s strategy of climate.impact.returns. DEG promotes high levels of environ-mental, social and corporate governance standards in the fund and in the investee companies.
 

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