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African Agricultural Capital Fund
Mauritius
Last updated 13 May 2020, by Impactyield.
Fund geography
Emerging countries (256) / Africa (127) / Eastern Africa (50) / Burundi (2)
The African Agricultural Capital Fund, managed by Pearl Capital Partners, primarily invests in small- and medium-sized agricultural enterprises to improve the livelihoods of smallholder farmers in East Africa. In September 2011, four members of the Global Impact Investing Network’s Investors’ Council – the Bill & Melinda Gates Foundation, the Gatsby Charitable Foundation, J.P. Morgan, and the Rockefeller Foundation – closed a USD 25 million impact investment into the Fund. The United States Agency for International Development provided a 50 percent debt guarantee to J.P. Morgan’s investment, as well as a grant-funded technical assistance facility
for the fund’s investees.
For more information, the GIIN published a brief case study on the formation of AACF, found here: http://www.thegiin.org/binary-data/RESOURCE/download_file/000/000/424-1.pdf
Asset class
Fund status
Fund style
Financial description
The Fund aims to address the lack of risk capital available to small and medium-sized businesses that serve Africa’s large agricultural community. It invests in companies that offer products and services to small-scale farmers, whose needs differ from large-scale farmers. By maintaining low overheads, out-sourcing operations, and operating in close proximity to communities in order to learn their needs, these companies are able to offer goods and services which are priced at levels small-scale farmers can afford and produce profits. These companies, in part due to their size, and in part due to the risks inherent to the agricultural sector, have historically faced enormous difficulties in accessing capital needed to grow.
The specific investment strategy of AACF includes the following objectives:
● A minimum of 75% of AACF’s investment will be located in Kenya, Uganda, Tanzania, Rwanda and Burundi. Up to 25% can be invested elsewhere in Africa
● No more than 10% of the AACF fund will be invested in any one company (USD 2.5 million)
● The minimum investment size will be USD 500,000 but initial investments above USD 200,000 will be considered if there is a strong potential of follow-on investment
13 years
of track record
2011
the year funded
30,000,000 USD
AUM
Interested in this fund?
Log in or create an account to request more information.
Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.
Asset manager
SDG goals
SDG targets
Encourage companies to adopt sustainable practices and sustainability reporting
Sustainable food production and resilient agricultural practices
Promote policies to support job creation and growing enterprises
Full employment and decent work with equal pay
Increase access to financial services and markets
Impact Category
Key performance indicators
Fund overview
Asset manager: Pearl Capital Partners
Product track record: Fund has 13 years of track record
Target IRR: 13%
Committed Capital: 25,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Open - post first close
Style/Stage: Early Stage, Growth Stage
Inception year: 2011
Vintage year: 2012
Target region: Africa, Burundi, Eastern Africa, Emerging countries
Target close date: 01/02/2012
Product term: 10 years +2x 1-yr ext
Assets under management: 30,000,000 USD (US Dollar)
Investment size: Min: 250,000; Max: 2,500,000; Avg: 0
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 2
Fund investments to date exited or repaid: 0
Management fee: 2.5%
Carried interest: 20%
Hurdle rate: 6%%
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: The Bill & Melinda Gates Foundation, JP Morgan Social Finance, The Rockerfeller Foundation, The Gatsby Charitable Foundation, United States Agency for International Aid (USAID)
Limited Partner / Investor Type: Other Institutional Investors
Contact
E-mail: info@pearlcapital.net
Website: http://www.pearlcapital.net
Phone number: +256 312264938
If you wish to have your details removed from this database please email gdpr@impactyield.com
Tom Adlam
Managing Partner
Wanjohi Ndagu
Partner
Impact Performance
n.a.
Impact thesis
The Fund’s financial returns will be matched with explicit and measured social and developmental impacts. The Fund will aim to: • make a substantial, measurable and sustainable impact on the lives of at least one million people over the life of the fund, and • encourage the growth of the agricultural business sector by providing risk capital to early stage companies that are then able to attract other sources of finance. The Fund will measure its social and developmental impact at an individual investment level by tracking metrics in the impact areas noted below. Additionally, USAID has set aside $1.75 million (Sh147 million) to give technical assistance to the SMEs that will be funded by AACF.
Impact Management
n.a.