British International Investment
6 October 2021

CDC commits $100 million to African Development Partners III (‘ADP III’)

  • Commitment to provide much-needed growth equity to medium-sized and large companies, delivering essential goods and services to the emerging middle class and mass market
  • US $100 million investment in ADP III reaffirms CDC and DPI’s aligned focus on investing in pioneering businesses driving positive, lasting change in Africa
  • Contributes towards UN Sustainable Development Goals (SDGs) in particular, on good health and well-being, gender equality, and improved economic opportunities through direct and indirect job creation (SDGs 3, 5 and 8)

CDC Group plc (“CDC”), the UK’s development finance institution and impact investor, has announced a US $100 million commitment to African Development Partners III, the Fund 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 US $900 million, becoming one of the largest funds dedicated to investing in Africa.

ADP III will target medium-sized and large companies in Africa, thereby facilitating 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, whilst also embedding gender lens investing and climate change into its investment mandate. ADP III has been recognised as the first 2X Flagship Fund, as part of the global 2X Challenge, which speaks to DPI’s commitment to gender-lens investing and creating economic opportunities for women in Africa. 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.

The UK’s development finance institution has been an important partner for DPI since the manager’s inaugural fund in 2008 and anchored the subsequent ADP II fund, committing US $75m at first close in 2013. CDC’s investment in ADP III strengthens the partnership with DPI, enabling the availability of greater capital to CDC’s target markets.

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 maximise both commercial and impact outcomes across the continent. We are thrilled that our patient and long-term capital will facilitate increased access to goods and services, and create lasting jobs that will continue to energise Africa’s growth.”

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