Impact investor Investisseurs & Partenaires (I&P) announced an investment on behalf of its impact fund-of-funds, IP Développement 2 or IPDEV2, in Teranga Capital, an equity impact fund which will target deals ranging from €75,000 to €300,000 in promising businesses in Senegal.
Teranga Capital, which is the third fund backed by IPDEV2, manages €5 million, and counts several Senagalese institutional and private investors among its supporters, including the Sovereign Fund for Strategic Investments (FONSIS) and SONATEL.
IPDEV2, which is looking to raise €20 million, held a first close in late 2015 of €9.5 million. The fund aims to invest in ten impact funds in ten African countries over the next 10 years. Typically, the fund will provide up to a third of the capital required by each African fund as well as act as a catalyst for additional investment for each fund from African business angels and other private investors.
In addition to Teranga Capital, IPDEV@ has backed Sinergi Niger, a pilot project founded in 2006 by I&P and six Nigerian entrepreneurs and Sinergi Burkina which was established in 2014. Sinergi Niger, which manages €750,000, has invested in 9 start-ups and realized 4 exits so far, while Sinergi Burkina, which has €2.5 million has made one investment to date.
IPDEV2 plans to launch and back seven other impact funds in seven additional countries including Côte d’Ivoire, Ghana, Mali, Cameroon and Madagascar. Each fund will provide between €30,000 and €300,000 in equity to up to 500 African small growing businesses, directly creating 15,000 formal jobs on the continent.
I&P anticipates holdings a second and final close for IPDEV2 in 2016.