British International Investment

BluePeak Private Capital Fund

AfricaCote d'IvoireKenyaMauritiusAfricaCommunications & IT servicesConstruction & Real estateConsumer - HealthFinancial servicesInfrastructure

BluePeak is an impact-driven private capital fund investing in mid-market businesses operating in Africa across several sectors through privately negotiated subordinated & mezzanine instruments. The fund reached a first close in 2021 and completed a second close in September 2023.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

British International Investment committed $30 million to BluePeak Private Capital Fund in 2021. The investment can help bridge the debt financing gap for midcap businesses in Africa, thereby enabling these companies to grow and create economic opportunities on the continent; primarily through direct employment. Our commitment to BluePeak, alongside other debt funds, could help proving the commercial viability of private debt strategies in Africa.

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.

What?

Impact

Provide income generating opportunities through direct and indirect job creation (SDG 8.5)

How?

Primary Secondary

Catalysing markets: Above benchmark financial returns can help build a track record and prove the viability of private credit strategies in Africa thereby attracting a greater supply of scarce debt capital (particularly debt that is structured, longer tenor, cross-border) to further unlock economic growth.

Direct: Provision of debt capital (average $15-20 each) to up to 10-12 midcap businesses for primary investments and expansion purposes.

Who?

Stakeholder Geography Characteristics
Employees

40%+ North Africa, 40%+ SSA (20% East Africa, 20% West Africa) across 9 core markets: Kenya, Tanzania, Egypt, Tunisia, Morocco, Senegal, Cote d’Ivoire, Ghana and Nigeria.

Likely to include both low and middle-income workers. Pipeline includes manufacturing, food processing, health, financial services sectors.

How much?

Scale Depth/Duration
  • Direct: If the fund performed in line with Africa private equity fund benchmarks, we could expect underlying companies to create up to 2,5k jobs over the lifetime of the fund.
  • Catalysing markets: Potential for large scale if this platform is replicated and results in increased access to debt capital for African businesses, unlocking growth and employment opportunities.

Catalysing markets: Likely to occur in the long term (5-10 years) if the platform is commercially successful.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Our commitment will help BluePeak reach a viable size at first close.
  • Value additionality: We can play a significant role in helping the manager build robust environmental, social and governance processes thereby minimizing negative impact risks

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

1.8-2.3

Risk

Execution Risk
  • Relates to the risk that the Fund will not reach a size allowing for meaningful scale and diversification, adversely impacting the scale of direct impact, as well as commercial returns for LPs, thereby failing to prove the viability of this structure (catalytic impact).
External Risk
  • Despite being commercially successful, BluePeak does not become a model that is replicated by others in the market, because of investor appetite for these markets.

Environmental and social information

  • 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.

  • 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

We agreed with the fund manager to develop and implement an ESMS for this first-time fund.

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]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    March 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D4469
    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
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Construction & Real estate, Consumer - Health, Financial services, Infrastructure

    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.

    Investment type :
    Fund
    Start date :
    May 2021
    Amount :
    $30m
    Currency of investment :
    USD
    Fund Manager:
    BluePeak Private Capital
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Luxembourg
    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

Investments made by this fund into companies:

For further information about these companies, visit https://www.bluepeakpc.com/

Investment name Country Region Sector Start date Status
Africure Pharmaceuticals Ltd Africa Africa Consumer - Health April 2022 Active
Grit Real Estate Income Group Africa Africa Construction & Real estate December 2021 Active
iENG Mauritius Mauritius East Africa Communications & IT services April 2022 Active
Prime Logistics Holdings Limited Kenya, Tanzania, Uganda East Africa Infrastructure September 2023 Active
Teyliom Finance Cote d'Ivoire West Africa Financial services December 2023 Active
Watu Credit Limited Kenya East Africa Financial services December 2022 Active

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