African SWF backs first PE fund

An African sovereign wealth fund (SWF) has backed its first private equity fund – committing to Injaro Investment Advisors’ upsized West Africa-focused private equity vehicle.

The Minerals Income Investment Fund (MIIF), Ghana’s minerals sovereign fund has commited approximately $2 million (GH₵‎25 million) to Injaro Ghana Venture Capital Fund (IGVCF) which is targeting GH₵400 million at final close.

The new size is more than twice the GH₵‎150 million that Injaro was originally looking for at final close.

The vehicle is a local currency denominated fund.

MIIF is Ghana’s minerals sovereign fund set up in 2018 to invest capital from the country’s mining sector. The SWF gets royalties from mining production and manages the government’s equity stakes  in mining companies.   MIIF had GH₵3.2 billion in assets under management as of 2022.

IGVCF touched first close on the fund in 2022, bringing in GH₵‎127 million, which was 84.7% of the initial final targeted amount.

The fund was buoyed to first close by commitments from Stanbic Investment Management, a Ghana-based financial services company. Stanbic committed an undisclosed to the fund on behalf of Axis Pensions Trust, a Ghana-based pensions fund.

Databank Asset Management Services, a Ghana-based financial services company also commited an undisclosed amount to IGVCF as part of the first close. Databank commited to the IGVCF on behalf of the Ghana Education Service Occupational Pension Scheme.

Other investors in the first close included Petra Advantage Pension Scheme and Petra Opportunity Pension Scheme. The duo was in the first close with undisclosed amounts.

Ghana-based government agency, Venture Capital Trust Fund was also in the first close with an undisclosed amount.

Edward Nana Yaw Koranteng, chief executive officer at MIIF represented the investor.

Jerry Parkes, managing director at Injaro.

IGVCF will back small and medium-sized companies operating in sectors with high growth prospects that contribute to job creation and sustainable economic growth.

The vehicle has a 10-year lifespan and will invest equity, quasi equity and debt investments across West Africa.

IGVCF will allocate 80% of the capital across Ghana, with the remaining 20% to be invested across Côte d’Ivoire.

Although generalist, the vehicle will have a leaning towards the consumer foods, agriculture, education, financial services, healthcare, manufacturing, and industrial sectors.

Deal size range has been set between GH₵8 million and GH₵20 million.

The fund is targeting final close before the end of 2023.

Injaro also manages Injaro Agricultural Capital Holdings Limited (IACHL), its maiden West Africa-focused agriculture vehicle, closed at $49.2 million in 2014.

IQ-EQ is fund administrator on IGVCF.

Fund Card

Source: Deal Book Africa