I&P Afrique Entrepreneurs II (IPAE2)

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.

Financial description

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.