(Agence Ecofin) – As part of its strategy to support intermediary companies in Africa, CDC Group has announced its first investments for the benefit of two vehicles managed by Vantage Capital and BluePeak and which support the growth of African companies in the private sector.
UK development finance institution CDC Group has committed $ 60 million to two Africa-focused investment funds. The first half of this resource was invested in Vantage Mezzanine Fund IV, a vehicle owned by mezzanine fund manager Vantage Capital. The other half was made available to BluePeak Private Capital Fund I, a vehicle managed by BluePeak.
“These commitments will allow fund managers to increase lending to African mid-market companies by providing financing tailored to meet market needs.”, explains CDC Group in a note relating to this operation.
This initiative marks the first investments made by the group as part of the African Private Credit Fund Strategy. This newly established strategy aims to support the growth of intermediary companies in Africa and to attract investors to African markets.
Through various financial instruments that it intends to deploy, CDC Group hopes to support the growth of medium-sized companies which very often do not manage to access the financing necessary for the development of their activities. The arrival of covid-19 having further tightened the availability of capital on African markets, the British investor believes that he is playing a major role for the benefit of the private sector.
The partnership with BluePeak and Vantage Capital will extend to other fund managers who engage alongside mid-size companies in Africa.