BluePeak Private Capital closes $156M fund to support African businesses

BluePeak Private Capital, a private capital firm focused on supporting the growth of scalable businesses in Africa, has reached a final close of its Private Capital Fund SCSp, at $156 million.

The fund is backed by a group of prestigious investors, including the African Development Bank (AfDB), British International Investment (BII), the European Investment Bank (EIB), the US Development Finance Corporation (DFC), FMO, SwedFund, and CDC Tunisia.

"We are honoured to have secured the backing of such a prestigious group of investors and meet the unique and evolving needs of businesses." said Walid Cherif, co-founder and managing partner of BluePeak Private Capital "We are excited about the next phase, of partnering with ambitious entrepreneurs to boost operational excellence, drive growth, strengthen ESG practices and unlock positive impact across Africa"

Established in 2019 with offices in Tunis, Nairobi, and London, BluePeak Private Capital invests in a variety of sectors, including healthcare, education, financial services, manufacturing, and technology. The firm focuses on companies that are generating revenues between $10 million and $80 million and have the potential to become pan-African market leaders. In 2021 the firm made the first close fund at $115 million, initially targeting a final close of $200 million with a hard cap of $250 million.

One of BluePeak's first investments following the first close of the Private Capital fund was in Grit Real Estate Income Group Limited (Grit), a London Stock Exchange-listed company that invests in and manages a diversified portfolio of high-quality assets across Africa. BluePeak's investment in Grit will help the company expand its portfolio of industrial and health facilities in East Africa.

Since then, the fund has gone on to assemble a diverse portfolio of six pioneering businesses operating across more than 30 African countries, including ieng, a leading pan-African provider of end-to-end infrastructure solutions for the telecoms industry operating out of Ghana and Africure a pan-African manufacturer and distributor of pharmaceutical products.

The African Development Bank (AfDB) invested $11 million in the private capital fund as part of its commitment to supporting the growth of small and medium-sized enterprises (SMEs) in Africa. SMEs are the backbone of the African economy, but they often face challenges in accessing financing. BluePeak's investment fund will help to address this challenge by providing SMEs with the growth capital they need to expand and create jobs.

“The commitment of the African Development Bank to our flagship fund is a strong sign of confidence in our strategy of supporting impactful businesses in Africa. SMEs in Africa are still facing financing challenges as a result of several macroeconomic setbacks. BluePeak was founded to fill part of this financing gap,” Walid said of AfDB's involvement in the fund.

BluePeak's final close comes at a time when Africa is experiencing rapid economic growth. The continent is home to some of the fastest-growing populations in the world, and its middle class is expanding rapidly. This growth is creating new opportunities for businesses in Africa, and BluePeak is well-positioned to support these businesses as they grow and scale.