Two of the largest impact investment firms were responsible for the larger Africa-related deal and fundraising stories last week. In terms of deals, The Rise Fund, managed by alternative investment giant TPG, has become the latest high-profile investor to back Zipline, a healthcare drone delivery service with operations in Rwanda and Ghana. The firm will use the capital to help support its expansion plans and push its already considerable growth.
On the fundraising side, Generation Investment Management, the impact investment firm co-founded by former US Vice President Al Gore, has announced the final close for its third and largest growth equity fund to date. The fund, Generation IM Sustainable Solutions Fund III, has raised $1 billion to invest in growth stage businesses around the world which help accelerate the world’s transition to a sustainable economy. Among the fund’s initial investments is Andela, a company which recruits and places African software developers, which landed $100 million from a group of investors led by Generation Investment in January this year.
There were a couple of private debt deals as well last week. BBOXX, the off-grid solar business has raised a Rwandan franc-denominated loan from the $100 million Facility for Energy Inclusion Off-Grid Energy Access Fund, which is managed by Lion's Head Global Partners. BBOXX will use the fresh financing to expand its operations in Rwanda further.
Heading west, XSML Capital's African Rivers Fund is backing SOS Médecins de Nuit, a Kinshasa-based healthcare company in which XSML’s first fund holds a minority stake, in a follow-on debt deal. The financing will be used to maintain the firm's growth trajectory. Since XSML first backed the firm in 2011, the business has grown dramatically, with the establishment of a new clinic, the opening of two more locations and an expanded service offering.
Another motorcycle ride-hailing business, this time in Nigeria, has successfully raised capital. Gokada, which was founded in 2018, has landed $5.3 million from a group of investors for its Series A round. The startup is looking to grow its network of drivers, recruit more technologists, increase the number of value-added services it provides its drivers as well as research additional verticals for growth opportunities.
The IFC is considering fund commitments to a couple of new funds. Quona Capital's latest fund, the Accion Quona Inclusion Fund, is one of the two being considered for a potential capital commitment by the DFI. The fund is looking for $225 million by final close to invest equity or equity-equivalent investments in early- and growth-stage companies that develop or provide products, services or technology to expand financial inclusion in emerging markets.
The second of the two funds is CardinalStone Capital Advisers' maiden third-party fund. CardinalStone Capital Advisers Growth Fund is looking to raise $100 million in time for its planned final close at the end of this year. The fund’s investment strategy is to back small and medium enterprises in Nigeria and Ghana, putting between $5 million and $15 million of equity to work in companies across a number of sectors. The IFC's board is expected to review each of the commitments by the end of June.
That's it for this week. As always, you can review these and other stories by clicking through to this week's preview edition of the newsletter.
Allan Cunningham is a senior media executive who has spent the last 15 years of his career working for some of the world’s most respected M&A and Private Equity media companies including Dow Jones’s publications Private Equity Analyst and VentureWire and most recently, The Deal. He has built a number of successful digital and event content businesses, both subscription and sponsor-supported, delivering information and content-marketing services to clients in the M&A and broader deal ecosystem. He recently struck out on his own and launched Rowayton Press, a multi-platform media company focused on the private capital opportunities in emerging and frontier markets. Mr. Cunningham holds a Bachelors degree from Liverpool John Moores University in the UK.
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