Project detail - BLUEPEAK PRIVATE CAPITAL FUND, SCSP

BLUEPEAK PRIVATE CAPITAL FUND, SCSP

Back to map

Who is our client

The BluePeak Private Capital Fund (BluePeak) aims to provide growth capital to small and medium companies in North, West and East Africa and up to 20% in the Levant. BluePeak targets to raise USD 200m in commitments and will be managed by BluePeak Private Capital which is a newly established fund manager with a head-office in Tunisia. The business is owned by a team that has worked together for many years managing similar funds. This is a new relationship for FMO.

Funding objective

BluePeak is a specialist mezzanine fund manager. Mezzanine financing consists of a blend between debt and equity financing. Such financing helps to addresses the funding gap that exists for companies who prefer to retain the ordinary equity whilst requiring growth funding to expand their businesses. The instrument thus includes a fixed repayment schedule (like debt) whilst also including some upside participation (akin to equity) if the business is successful. BluePeak will invest across multiple sectors with a target investment size of USD15-20m. Focus countries include Kenya, Tanzania, Ethiopia, Uganda, Ghana, Nigeria, Cote d’Ivoire, Senegal and Zambia, Morocco, Tunisia and Egypt.

Why we fund this project

BluePeak has a very experienced and professional management team that is committed to building a world class fund management business committed to the highest ESG standards. By supporting BluePeak we collaborate with a local partner to help finance growth and empower entrepreneurs in the African continent.

Environmental and social rationale

Even though the fund is a ‘blind pool’ (i.e. contains no investments at the outset), we have classified this fund commitment as risk category A since some of the companies in their pipeline are considered to be high risk. Doing so results in increased requirements and oversight to ensure that ESG risks are adequately addressed. BluePeak has demonstrated a strong commitment to implementing high ESG standards in their selection and execution of investments. They have in-house capability to do so and FMO will support the manager in further developing and implementing ESG best practice.

Website client
https://www.bluepeakpc.com/
Region
Africa
Country
Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
5/21/2021
Total FMO financing
USD 15.00 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)
A