Our investment
Description of the investment.
Description of the investment.
The deal involves a USD 20m commitment in Alterra I, a Pan-African generalist private equity fund. The Fund targets mid-cap, EBITDA-positive companies that offer essential consumer goods, services, and business solutions.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Access to finance for businesses and capital markets, enabling business expansion and job creation through productivity gains (SDG 8.2, 8.5). |
|
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How?
| How? |
|---|
|
The Fund will invest a variety of projects and enabling technologies and services which are expected to have positive spillovers to the productivity of other firms, such as data centres, payment systems, and provision of financial services. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Customers |
Africa |
Alterra has indicated 100% of portfolio investments will align with one 2X Criteria, and 50% will align with two Criteria over the life of the fund. Targeting investments predominantly in low emissive sectors (ICT, consumer, healthcare, financial services, business services and technology). Alterra may invest in companies with some reach to low-income customers, employees and/or suppliers in sectors such as financial services, hospitality and agriculture. |
| Employees |
Africa |
|
| Suppliers |
Africa |
How much?
| Scale | Depth/Duration |
|---|---|
|
Scale of impact will be variable depending on the nature of various investments. We expect material job creation based on track record of Alterra Team past investments. |
Depth of impact will vary depending on different investments (e.g. employment, gender, climate). Duration will be contingent on the company performance and likely to vary across investees, although long lasting for successful investments. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Our contribution to the fund is rated Medium at this stage in the context of overall potential commercial interest in the fund. We have confidence that the Alterra will be unable to reach its target from commercial sources only. DFI capital will be necessary to reach the final close target because the African PE market continues to be perceived as risky by many commercial investors. Therefore, our investment will likely help the fund manager reach its target size fund size. |
Risk
Execution RiskThe fund fails to achieve optimal size, and/or target size leading to sub-optimal portfolio and impact. Alignment RiskThe fund may invest in some companies with limited alignment to BII’s impact approach. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
This investment is rated as medium-high E&S risk due to the fund's target portfolio. We are working closely with the fund manager to strengthen its existing ESMS through the agreed action plan.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- First published
:
When the investment was first published on the website database.
- March 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- March 2025
- Project number
:
An identifier number shared by investments in the same project.
- D4915
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Africa
- Investment type :
- Fund
- Start date :
- December 2024
- Amount :
- $20m
- Currency of investment :
- USD
- Fund manager:
- Alterra Africa Accelerator Manager
- Domicile
:
The company or investment fund’s place of incorporation.
- Mauritius
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- 2X Gender Finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- 2X qualification criteria:
:
2X Criteria the investment qualifies under. See 2X Criteria for more information.
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- Leadership — Board of Directors/Investment Committee
- Employment
- Indirect/Portfolio
- First published
