BluePeak Private Capital (BluePeak) announced on Tuesday that it has achieved final closing of its $156-million inaugural fund, the BluePeak Private Capital Fund SCSp. BluePeak describes itself as “an alternative asset manager [sic] firm supporting the growth of scalable businesses in Africa through privately negotiated and structured debt-like instruments” and that the successful closing “signifies the emergence of private debt as an attractive asset class, offering superior risk adjusted and a compelling alternative for African [small and medium-sized enterprises].”
The fund is backed by major development finance institutions. These are: the African Development Bank, British International Investment, the Caisse des Dépôts et Consignations Tunisia, the (US) Development Finance Corporation, the European Investment Bank, FMO (the Netherlands’ entrepreneurial investment bank), and SwedFund (the Swedish development finance institution). The fund is also backed by private investors, the most recent of which to invest in it being South Africa-based Sango Capital.
“When we established BluePeak in 2019, it was to form part of a solution to fill Africa’s funding gap,” explains BluePeak co-founder and managing partner Walid Cherif. “Difficulty obtaining capital for ambitious businesses has long held back their financial development and positive economic and social impacts. We are honoured to have secured the backing of such a prestigious group of investors and meet the unique and evolving needs of businesses. We are excited about the next phase, partnering with ambitious entrepreneurs to boost operational excellence, drive growth, strengthening ESG [environmental, social and governance] practices and unlock positive impact across Africa.”
Founded in 2019, BluePeak is represented in Tunis, Nairobi and London. It was created to close a financing gap and focus on providing tailor-made solutions for “impactful” African businesses. It seeks to construct partnerships which support impactful growth across the continent and also deliver attractive returns.
“BluePeak believes that ESG factors positively contribute to investment performance, as well as to help build a more stable, sustainable business and inclusive global economy,” states the company. “In addition, BluePeak proactively identifies areas where positive impact can be achieved.”
In the three years following the achievement of initial closing for the fund, it has built a portfolio of six businesses it sees as being pioneering. These operate in more than 30 African countries and employ more than 7 500 people. The fund seeks to promote growth, employment and gender equality, with sustainability as the central focus.