BpiFrance and Mubadala form African Private Equity Platform

Posted on 06/30/2021

Bpifrance, the French national investment bank, and Mubadala Investment Company (Mubadala) announced the signing of a Memorandum of Understanding (MoU) to launch a new co-investment partnership dedicated to African private equity. The two investors will aim to deploy up to EUR 350 million through fund and direct investments in private equity and venture capital, with a focus on high-growth African startups, SMEs, and mid-caps. The MoU was signed on the occasion of the 13th session of the UAE-France Strategic Dialogue. This effort is similar to actions taken by Bpifrance and Proparco, a subsidiary of the Agence Française de Développement (French Development Agency) dedicated to the private sector.

Bpifrance and Mubadala have worked together since the launch of the French Emirati Fund in 2014 and the Innovation Partnership in 2017, with approximately EUR 1 billion of joint investments in French companies (directly and through funds), and a EUR 1 billion commitment by Mubadala into Bpifrance’s flagship Lac1 Fund dedicated to listed French multinationals.

Through this new program, the two partners intend to make joint investments in top-tier African private equity and venture capital funds, with a focus on regional, multi-country and pan-African funds and fund managers with a proven track record, building upon the expertise and network of Bpifrance.

Africa and Bpifrance
Bpifrance has been active in Africa over the past 20 years through a pioneering fund of funds program. Bpifrance has been investing in Africa for over 20 years through a dedicated fund of funds program, Averroès. The Averroès team manages a portfolio of 21 private equity and venture capital funds and over 150 underlying companies – startups, SMEs and mid-caps – based out of 40 African countries. It recently launched a fourth fund of funds, Averroès Africa, with a target size of EUR 100 million. The Averroès program was first launched in 2003 by Bpifrance and Proparco to foster private equity market development. Made for North Africa at first, Averroès Finance III extended the program to the whole continent in 2015. Following the Averroès Finance III scheme, Averroès Africa targets multi-sectoral private equity funds but mostly focuses on venture capital funds, with a multi-country, regional or pan-African dimension. In line with the African market evolution, Averroès Africa will now invest in financial services, health, and agribusiness funds for the first time.

Africa represents 51% of Proparco’s activities.

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