The CDC Group, a UK development finance institution and impact investor, has announced a Ksh. 11 billion (USD 100 million) commitment to African Development Partners Fund III (ADP III). The Fund is advised by Development Partners International LLP (DPI), a leading pan-African private equity firm.
CDC’s latest commitment supports ADP III fundraise as it closes at Ksh. 99 billion (USD 900 million), becoming one of the largest funds dedicated to investing in Africa.
ADP III will target medium-sized and large companies in Africa for funding. This is expected to facilitate greater job creation, economic diversification, and market expansion, whilst also funding essential services through corporate taxes. As part of its strategy, the fund will also focus on innovation-led businesses that are transforming critical sectors such as healthcare and agriculture, and are in turn, helping to foster economic growth across the continent.
CDC’s commitment reaffirms the DFI’s confidence in DPI’s hands-on approach to value creation as the fund manager continues to make strong strides in ESG and development impact. Supported by CDC, DPI has trained their investment teams on opportunity-led gender finance and has embedded appropriate safeguarding measures within the fund and across its portfolio. DPI has also been developing tools to assess climate-related risks and opportunities in their investments.
Commenting on the company’s latest commitment, John Owers, Head of Mid/Large Funds at CDC Group said, “We are pleased by DPI’s rigorous and focused ability to provide targeted support to investees in sectors that serve the continent’s growing middle class. Our commitment to ADP III demonstrates our confidence that DPI’s third fund presents an opportunity to make investments that help to maximize both commercial and impact outcomes across the continent.”