Project detail - AFRICAN DEVELOPMENT PARTNERS III MA

AFRICAN DEVELOPMENT PARTNERS III MA

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Who is our client

Development Partners International (“DPI”) was established in 2007 and is a leading pan-African private equity firm. FMO has invested in its first private equity fund: African Development Partners I (“ADP I”). DPI now manages USD 1.1bn in AUM and has invested in 20 portfolio companies across its two funds, ADP I, and its successor fund, African Development Partners II (“ADP II). DPI is now raising its third fund: African Development Partners III (“ADP III”).

Funding objective

DPI's strategy is to build a diversified pan-African portfolio of private equity investments in established and growing companies benefiting from Africa's fast-growing, middle class. ADP III is expected to invest USD 40 – USD 120m in 8 – 14 different companies. DPI has more than 35 members of staff, of which 40% are women, and its investment team is 100% African. DPI also has a dedicated Portfolio Management team that works closely with the management’s teams of its investees. ADP III will contribute to the creation of value within its investees and the positive impact they have on their local communities, creating more jobs and increasing government tax revenues as well as broadly fostering regional economic integration.

Why we fund this project

This investment fits FMO’s strategy, deepening a relationship with an existing partner in African private equity investing and contributes further to FMO’s ambition of being a preferred partner for growth in emerging markets.

Environmental and social rationale

Based on the risk profile of the pipeline companies, the preliminary E&S categorization is B. DPI has shown a solid commitment towards E&S and has a strong environment and social management system in place. DPI also has an experienced and dedicated ESG manager in its team. DPI undertakes rigorous ESG due diligence during its investment process and creates ESG action plans for its portfolio companies to align them with the IFC Environmental and Social Performance Standards.

Region
Africa
Country
Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
3/31/2020
Total FMO financing
USD 25.00 MLN
Fund
FMO
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