Our investment
Description of the investment.
Description of the investment.
Inside Equity Fund II is the second fund managed by Inside Capital Partners, a generalist PE fund manager, with a focus on the food & agriculture, technology, waste management, light manufacturing, healthcare, financial services and consumer goods & services sectors. The Fund will invest $2-10m tickets in Small and Medium-sized Enterprises (SMEs) in underserved markets of Southern and Eastern Africa, focusing primarily on Zambia, Madagascar and Mauritius with a secondary focus on Malawi, Mozambique and Tanzania.
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 SMEs in underserved geographies, enabling business expansion and quality jobs through growth capital and value creation (SDG 8.3) |
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How?
| Primary | Secondary |
|---|---|
|
Providing growth capital in the of equity and quasi-equity investments to SME businesses in primary target geographies. |
Economic enabler: Based on track record (Fund I) and initial pipeline of IEF II, significant investments will be made in "economic enabler" sectors (e.g. energy, packaging, etc.). |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Variable depending on portfolio company (e.g. Customers, Employees, Suppliers) |
Primary targets: Zambia, Madagascar (~70% of IEF II) and Mauritius (25% exposure cap); opportunistic investments in Malawi, Tanzania and Mozambique |
The Fund will invest in sectors such as light manufacturing, packaging, recycling, renewable energy, agri-business. A part of the portfolio is expected to align with the 2X-Challenge by exit. |
How much?
| Scale | Depth/Duration |
|---|---|
|
The scale of job creation is expected to be material and inline internal Impact Benchmarks and Fund I metrics. |
The pace of implementation will vary by portfolio company, but expected duration of impact is long (i.e. beyond exit) as new practices are embedded into business models |
Contribution/additionality
| Contribution/additionality |
|---|
|
Our Contribution to this deal is considered High. There is limited commercial appetite to invest in IEF II, with DFI capital making up a large portion of the cap table. |
Risk
Execution RiskEF II is larger than its predecessor, and may expand into new countries as well. Executing in current geographies of focus already poses a risk. This is partially mitigated by Inside’s track record to date. External RiskGeographies of focus (with exception of Mauritius) are likely to face social, political and/or economic shocks over the life of the fund, which will need to be managed. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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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
We agreed an ESAP that focuses on the development and implementation of a robust Environmental and Social Management System, including incorporating gender-based violence and harassment and physical climate risk assessment through the Fund’s due diligence and monitoring processes.
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
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D7827
- 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.
- East Africa, Southern Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Madagascar, Mauritius, Zambia
- Investment policy :
- Catalyst
- Investment type :
- Fund
- Start date :
- December 2025
- Amount :
- $10m
- Currency of investment :
- USD
- Fund manager:
- Inside Capital Partners
- 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.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
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.
- Last updated
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Gender and climate finance facts
- 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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- Employment
2X threshold 45%: Investee already meets threshold - Indirect/Portfolio
2X threshold 50%: Investee commits to meet threshold - Governance and Accountability
- Employment
- 2X sector
:
Indicates the specific 2X sector benchmark the investment qualifies under. See 2X Criteria for more information.
- Financial and Insurance Activities
- 2X country
:
Indicates the specific 2X country benchmark the investment qualifies under. See 2X Criteria for more information.
- Zambia
- 2X gender finance
