Project detail - CATHAY AFRICINVEST INNOVATION FUND

CATHAY AFRICINVEST INNOVATION FUND

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Who is our client

Founded in 1994, AfricInvest is one of the most experienced private equity investors in Africa, having raised EUR 1.2bn in its 25-year history. In affiliation with Cathay Innovation the Firm is launching their first pan-African Innovation Fund, “Cathay AfricInvest Innovation” fund. This partnership capitalizes on the pan-African presence of AfricInvest teams and their in-depth knowledge of the entrepreneurial networks across Africa, as well as the experience and depth of Cathay Innovation's global platform that connects the main technological ecosystems in Europe, China and the United States.

Funding objective

The "Cathay AfricInvest Innovation" fund will contribute to the development and scaling up of innovative companies that demonstrate strong growth in Africa. The fund team will provide selected companies with high value-added support by mobilizing its multidisciplinary expertise and networks within the various ecosystems in order to facilitate partnerships and accelerate their geographical expansion, with the aim of building up leaders in their respective sectors of activity.

Why we fund this project

FMO is participating in the fund's first closing in order to show its trust and support for the fund manager in this new endeavor. On the back of a proven track record in SME investments in Africa (including a very successful single-country innovation fund and some selective innovative early-stage investments) with due attention to ESG risk management and value creation, FMO is now supporting this new initiative of the fund manager addressing the opportunities created through technology development in Africa.

Environmental and social rationale

The Environmental and Social category of Cathay AfricInvest Innovation Fund is considered B. The fund will invest in late-stage innovative and tech-enabled business models which are associated with low E&S risks because of the limited number of employees and limited environmental impacts. The specific E&S challenges that the fund will encounter through its investments are related to data privacy and security and general labor conditions, which are being addressed properly by the fund’s ESGMS.

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Date Total FMO financing
10/18/2019 EUR 4.40 MLN
Region
Africa
Country
Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
10/18/2019
Total FMO financing
EUR 4.40 MLN
Fund
Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B