Alternative asset manager BluePeak Private Capital has successfully closed its first private capital fund, raising $156 million. The fund focuses on privately negotiated and structured debt instruments to support scalable businesses in Africa.
Key Details:
- BluePeak’s Approach:
- BluePeak Private Capital focuses on supporting the growth of scalable businesses in Africa through privately negotiated and structured debt instruments. This approach is aimed at providing a flexible and tailored financing solution for SMEs.
- Significance of the Closing:
- The closing of the inaugural fund at $156 million highlights the emergence of private debt as an attractive asset class, offering superior risk-adjusted returns and providing a compelling alternative for African SMEs.
- Investor Base:
- The fund attracted a diverse group of investors, including development finance institutions (DFIs) and impact-focused entities. Investors include the African Development Bank (AfDB), British International Investment (BII), European Investment Bank (EIB), US Development Finance Corporation (DFC), FMO, SwedFund, and CDC Tunisia.
- Range of Impactful Investments:
- In less than three years from initial closing, the fund has built a diversified portfolio comprising six pioneering businesses. These companies operate in over 30 countries across Africa, employing over 7,500 people and positively impacting the lives of millions of Africans.
- Addressing Financing Gap for SMEs:
- BluePeak aims to bridge the financing gap faced by growing companies in Africa. With an estimated funding gap of $421 billion for African SMEs, this initiative plays a crucial role in enhancing the operational longevity of these businesses.
- Commitment to Sustainability:
- Sustainability is at the core of BluePeak’s mission. The firm has implemented best-in-class Environmental, Social, and Governance (ESG) and Impact frameworks aligned with industry standards. These practices are integrated into the investment process to maximize positive and long-lasting impact.
- Focus on 2X Challenge Initiative:
- BluePeak partners with stakeholders to encourage growth, employment, and opportunities while promoting gender equality. This commitment aligns with the 2X Challenge initiative, which aims to mobilize capital towards women’s economic empowerment.
Conclusion: The successful closing of BluePeak Private Capital’s inaugural fund is a significant milestone in supporting the growth of scalable businesses in Africa. By providing tailored financing solutions through structured debt instruments, BluePeak aims to address the financing gap faced by SMEs in the region. The fund’s focus on sustainability and impact aligns with broader initiatives aimed at driving positive economic and social change.
