Development Partners International, or DPI, is in the market with its fourth fund and a fundraising goal of $1 billion for growth-stage African businesses. The London-based private equity firm has reached a first close for African Development Partners IV, with backing from the International Finance Corp., and French and German development banks. The IFC committed up to $75 million, along with a co-investment commitment of $50 million. France’s Proparco committed $42 million and Germany’s DEG committed $50 million.
DPI launched the fund, one of the largest single Africa-focused private equity funds, last year. The firm aims to invest in about a dozen mid- and large-sized companies in education, health, financial services, consumer goods and other sectors.
It aligns its investment strategy with gender-inclusion targets from 2X Global, and also tracks impact metrics around job quality, job growth and climate.
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DPI launched its first African Development Partners fund in 2009, raising $400 million. Its second fund closed in 2015 at $725 million, and its third closed in 2021 during peak private equity fundraising at $900 million.
Last year, DPI launched a venture capital strategy, acquiring a $105 million Egypt-based fintech fund, Nclude, to anchor the strategy.
DPI completed its $190 million investment in Egyptian healthcare company Alameda Healthcare last week. The firm in December exited African financial services unicorn Atlantic Business International. DPI invested in the Côte d’Ivoire-based company with its second fund and sold its 20% stake to Morocco-based Banque Centrale Populaire Group. Its portfolio company Optasia, which is using AI to expand access to financial services in Africa, went public on the Johannesburg Stock Exchange in November.
DPI did not get back to ImpactAlpha about the size of its first close by press time.
