Paris-based Amethis is keying in on the opportunity to serve Africa’s growing low- to middle-income population. The European Investment Bank invested $27 million in Amethis’ third fund, which will back mid-sized companies that cater to such customers. The funding follows a $152 million first close for the fund last year.
“African enterprises still don’t have the patient equity capital they need for them to grow, which is what our partnership with funds like Amethis seeks to address,” said EIB’s Thomas Östros.
To wit: African ecommerce startup Copia recently went into receivership after struggling to raise funding.
Pan-African impact
With more than $1 billion under management, Amethis has funded 30 African companies over a dozen years and notched 15 exits. The private equity firm also invests in European small and mid-sized companies doing business in Africa.
It targets companies operating in sectors where there are exit track records and liquidity such as retail, health, education and financial services.
Amethis’ third fund, an Article 9 sustainable fund under European regulations, will tie 20% of its carried interest to impact targets that include carbon-efficiency, gender goals and employee health coverage. The firm also implemented a value-sharing strategy for portfolio company employees to boost retention, reduce inequalities and enhance productivity.
