Enko Capital Secures $100 Million for Growth Fund Focused on Africa
Enko Capital's Fundraising Milestone
Enko Capital, an alternative asset manager dedicated to Africa, has achieved a significant milestone by securing $100 million in the first close of its private credit strategy. This initial capital comes as part of a broader goal to raise a total of $150 million by the fund's final close, with an ultimate cap set at $200 million.
Who Are the Investors?
The first close included backing from notable investors such as British International Investment, a UK development finance institution, and the International Finance Corporation, a member of the World Bank Group. This diversified investor base also features SICOM Global Fund Limited, among other African pension funds and family offices, highlighting broad interest in supporting Africa's economic growth.
Investment Focus
The objective of the Fund is to provide US dollar-denominated private credit to mid-market companies throughout Sub-Saharan Africa. The investment strategy emphasizes established and cash-generating enterprises in non-cyclical sectors like agriculture, telecommunications, manufacturing, renewable energy, and financial services. By giving flexible financing options tailored to the unique needs of these businesses, the Fund strives to alleviate the structural credit shortages that mid-sized firms face across the continent.
Statements from Leadership
Leslie Maasdorp, Chief Executive Officer at British International Investment, expressed confidence in the Fund's mission. He stated, "Our commitment to the Enko Impact Credit Fund reflects our belief in the commercial potential of private credit in Africa and its critical role in addressing the financing gap experienced by mid-sized businesses. This investment sends a strong message to other potential investors to contribute additional capital, fostering a thriving market for private credit that underpins significant economic development in Africa."
Alain Nkontchou's Insight
Alain Nkontchou, Managing Partner of Enko Capital, added, "The successful first close of our flagship private credit strategy highlights the growing investor confidence in sustainable development across Africa. With backing from leading international institutional investors and local partners, we are well-positioned to provide customized capital solutions to high-quality mid-market SMEs. This, in turn, will unlock growth and employment opportunities while ensuring promising returns for our investors."
Partnership with IFC
Additionally, this close marks the first investment stemming from the partnership established between British International Investment and the International Finance Corporation. Mohamed Gouled, IFC's Vice President of Industries, remarked, "Expanding access to finance for mid-sized companies is vital for promoting inclusive growth in Africa. Our support for the Enko Impact Credit Fund is a testament to IFC's commitment to offering long-term and flexible funding aimed at fostering business growth and job creation across various sectors crucial for sustained economic advancement."
About Enko Capital
Enko Capital is dedicated to managing investments in debt, private debt, equity, and private equity across the African continent. With total assets under management reaching $1.3 billion, the firm prides itself on possessing in-depth knowledge of the African market, bolstered by reputable investment expertise. Enko consistently aims to achieve strong risk-adjusted returns for its investors while contributing positively to African economies.
Contact Information
For inquiries, reach out via email at nick.white@enkocapital.com.
Frequently Asked Questions
What is Enko Capital's primary objective with this Fund?
Enko Capital aims to raise funds to support mid-market companies across Africa, providing flexible private credit to address existing financing gaps.
Who are the primary investors in the Fund?
Investors include British International Investment, the International Finance Corporation, and various African pension funds and family offices.
What sectors will the Fund support?
The Fund focuses on industries such as agriculture, telecommunications, renewable energy, and financial services within the African market.
Why is private credit important for Africa?
Private credit plays a crucial role in enabling growth for mid-sized enterprises that often face challenges accessing traditional financing avenues.
How does Enko Capital ensure returns for investors?
Enko Capital employs a strategic investment approach combined with extensive market knowledge aimed at achieving competitive, risk-adjusted returns for its investors.
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