The African Development Bank is making a $15 million commitment to ShoreCap III, Equator Capital’s planned $150 million fund which will back small and medium-size enterprise banks, microfinance institutions, micro-insurance and financial technology companies in equity and quasi-equity deals.
The fund will make investments exclusively in sub-Saharan Africa and expects to make up to 15 deals averaging $8 million in size over the course of its life. As well as providing its investors with competitive returns, the fund will look to back companies which traditionally have had scarce access to equity funding, while working to improve their corporate governance processes and help them comply with environmental, social and corporate governance standards.
ShoreCap III is Chicago-headquartered Equator Capital’s first dedicated Africa fund. The fund’s investment and portfolio management operations will be run out of the impact investor’s offices in Abidjan, Johannesburg and Nairobi.