I&P Afrique Entrepreneurs II (IPAE2)

Mauritius

Last updated 11 May 2020, by Impactyield.

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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.

6 years

of track record

2016

the year funded

80,000,000 EUR

AUM

SDG goals

SDG targets

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

Fund overview

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:

Product status:

Style/Stage: , , ,

Inception year: 2016

Vintage year: 2017

Target region: , ,

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

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

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

Contact

E-mail: n.a.

Website: http://www.ietp.com/en/content/impact-funds

Phone number: +33 1 58 18 57 10

If you wish to have your details removed from this database please email gdpr@impactyield.com


Impact Performance

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n.a.

Impact thesis

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.

Impact Management

n.a.

Financial benchmark

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