Mubadala, Bpifrance set to invest US$415m in African private equity funds

AFRICA – Abu Dhabi sovereign wealth fund Mubadala Investment Company and French public investment bank Banque Publique d’investissement (Bpifrance) have teamed up to invest as much as €350 million (US$415m) in Africa-focussed private equity and venture capital funds.

The co-investment partnership will focus on regional, multi-country and pan-African funds and fund managers with a proven track record, Mubadala and Bpifrance said in a joint statement.

This partnership will look to deploy money that will eventually be invested in high-growth African small and medium enterprises (SMEs) as well as startups, the two investment firms said.

Mubadala and Bpifrance signed an initial pact to start the partnership during the 13th session of the UAE-France strategic dialogue. This is similar to arrangements that Bpifrance has with French development financier Proparco.

Bpifrance has been investing in Africa for over 20 years through Averroès, a dedicated fund of funds programme. Averroès manages a portfolio of 21 private equity and venture capital funds and over 150 underlying companies – startups, SMEs and mid-caps – based out of 40 African countries.

It recently launched a fourth fund of funds, Averroès Africa, with a target size of €100 million (US$118.27m).

Mubadala and Bpifrance have been working together since 2014 when they launched the French Emirati Fund.

Three years later they started the so-called Innovation Partnership with approximately €1 billion (US$1.18bn) of joint investments in French companies and an equal amount committed by Mubadala into Bpifrance’s flagship Lac1 Fund dedicated to listed French multinationals.

Bpifrance has been active in Africa over the past 20 years through a pioneering fund of funds program. Bpifrance has been investing in Africa for over 20 years through a dedicated fund of funds program, Averroès.

The Averroès team manages a portfolio of 21 private equity and venture capital funds and over 150 underlying companies – startups, SMEs and mid-caps – based out of 40 African countries. It recently launched a fourth fund of funds, Averroès Africa, with a target size of €100 million (US$118.27m).

The Averroès program was first launched in 2003 by Bpifrance and Proparco to foster private equity market development. Made for North Africa at first, Averroès Finance III extended the program to the whole continent in 2015.

Following the Averroès Finance III scheme, Averroès Africa targets multi-sectoral private equity funds but mostly focuses on venture capital funds, with a multi-country, regional or pan-African dimension. In line with the African market evolution, Averroès Africa will now invest in financial services, health, and agribusiness funds for the first time.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.