I&P Afrique Entrepreneurs II (IPAE2)
Last updated 11 May 2020, by Impactyield.
I&P Afrique Entrepreneurs II makes investments in sub-Saharan Africa entrepreneurs by providing capital to underserved SMEs that face difficulty in obtaining capital necessary for growth and expansion for basic services and essential needs including water, healthcare, housing, education, energy.
I&P Afrique Entrepreneurs 2's vision is to continue and deepen the impact mission of I&P and promote the emergence of a new generation of responsible African entrepreneurs. IPAE2 will consolidate the achievements of the first fund in the challenging African context:
- 35-45 investments for a €80m fund
- As a minority shareholder (equity & quasi-equity), investments will range from €300k to €3m
- Focus on SMEs managed by African entrepreneurs, in their expansion stage, but also startups.
- In Sub-Saharan Africa, with a primary focus on Francophone West and Central Africa, as well as in East Africa
- In diversified sectors, e.g. agri-business, microfinance, health, education, construction industry, IT...
Impact and financial expected returns:
- Promotion of 35-45 African champions that can set an example and foster the entrepreneurial spirit in Africa
- A wide sectorial and geographical coverage to diversify risks and have a global impact on African development
- Significant financial net return of 8-12%
- Important extra-financial return related to: employment and social progress, good management of environmental impact and ethical and governance progress.
IPAE2 will invest in African SMEs on a track of fast growth and bringing local added value, managed by African entrepreneurs and driven by their contribution to development.
The IPAE2 team will invest equity and quasi-equity with a minority stake approach and a ticket size between €300k and €3m. IPAE2 targets 35 to 45 investments for a€80m fund, with a 5-6 year holding period. The exist strategy will be adapted for each deal to the entrepreneur's vision and the company's sustainability: either a put option or an external exit on a strategic/financial partner.
IPAE2's investment strategy includes a proven methodology combining:
- Finance (investment as a minority shareholder in equity/quasi-equity between €300k to €3m)
- Strategic and management mentoring (before and during the investment period)
- Technical assistance, used for capacity building, skills transfer and training.
Equal rights to ownership basic services technology and economic resources
Encourage companies to adopt sustainable practices and sustainability reporting
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
Asset manager: Investisseurs & Partenaires (I&P)
Product track record: Fund has 6 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Open - no committed capital
Inception year: 2016
Vintage year: 2017
Target close date: 01/07/2017
Product term: Closed-End, 10-year tenor from first Closing with a 2-year possible extension
Assets under management: 80,000,000 EUR (Euro)
Investment size: Min: 300,000; Max: 3,000,000; Avg: 1,000,000
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors, Retail Investors
The IPAE team is committed to improve the portfolio companies' environmental, social and governance-related (ESG) practices, to enhance their positive impacts and to mitigate potential negative impacts.
We aim at building the business case for ESG implementation accross African SMEs:
- By integrating ESG factors in all steps of the investment process from pre-screening to exit
- By working closely with entrepreneurs to build capacity as early as possible
- As far as possible, by promoting actions creating combined societal and economic value
IPAE2 will continue addressing four key impact objectives:
1 - ENTREPRENEURS: develop sustainable entrepreneurship in local SMEs
2 - EMPLOYEES: create decent jobs & training opportunities
3 - CLIENTS: meet unsatisfied demand for goods and services and contribute to the new SDGs
4 - SUBCONTRACTORS: create business for suppliers & distributors and have a knock-on effect locally
All these while fostering and environment-friendly development.