Private equity fund ADP III secures US$26m from Finnfund to expand regionally across Africa

AFRICA – Finnfund, a Finnish development financier and impact investor, has announced a US$26 million commitment to African Development Partners III (ADP III), a pan-African private equity fund.

ADP III aims to support established and growing consumer focused businesses to improve their processes and expand regionally across Africa.

The fund provides companies with growth capital and know-how aiming to contribute to job creation, climate change mitigation, and gender balance.

In addition, the fund will bring liquidity to developing markets, helping African businesses to recover from the economic and social consequences of the COVID-19 crisis.

“We are very pleased to announce our commitment to ADP III, as it fits well to Finnfund’s strategy as a development financier and impact investor,” Riikka Molander, Associate Director at Finnfund, said.

“Through this investment, we aim to foster growth and development of African businesses currently facing the consequences of the COVID-19 crisis.

“Through this investment, we aim to foster growth and development of African businesses currently facing the consequences of the COVID-19 crisis.“

Riikka Molander – Associate Director, Finnfund

“We are particularly happy about the fund’s strong hands-on approach and its commitment to foster gender balance, equality and diversity in its portfolio companies, as well as within its own team.”

The fund is advised by Development Partners International (DPI), a private equity firm with a US$1.1 billion portfolio that has invested in 20 portfolio companies across its two former funds: ADP I and ADP II.

ADP III is aiming to invest US$40-120 milliion in 8–14 companies in different sectors. It is the first 2X Gender Flagship Fund globally.

So far, the fund has made three investments in three sectors: in microfinance and fintech, food processing, and pharmaceuticals.

The status was awarded on the fund’s commitment to promoting internal gender diversity within the fund itself and investing with a gender lens using the 2X criteria.

2X Challenge is an international gender lens investing initiative that aims to increase access to finance for women-owned, women-led and women-supporting enterprises in developing and emerging countries.

Its first target to mobilise US$3billion globally by the end of 2020 was exceeded by 1.5 billion, and a new target will be launched in June. 

Finnfund has been a member of 2X Challenge since 2019.