African Agricultural Capital Fund


Last updated 13 May 2020, by Impactyield.

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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:

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

12 years

of track record


the year funded

30,000,000 USD


Asset manager

Pearl Capital Partners


Headquarters location:

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

Key performance indicators

Fund overview

Asset manager: Pearl Capital Partners

Product track record: Fund has 12 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:

Product status:

Style/Stage: ,

Inception year: 2011

Vintage year: 2012

Target region: , , ,

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: ,

Currency of investments:

Currency for fund / product figures:

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




Phone number: +256 312264938

If you wish to have your details removed from this database please email

Tom Adlam

Managing Partner

Wanjohi Ndagu


Impact Performance


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


Financial benchmark

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