A credit player has missed the final target on its Africa-focused renewable energy specialist vehicle by 34%.
Cygnum Capital Asset Management has brought in $166 million at the final close of the AfricaGoGreen Fund (AGG Fund), which is about 34% less than its $250 million target at final close. A lower target for the fund was earlier set at $230 million.
The fund previously secured $150 million, about 60%, for its interim close earlier in 2024. Cygnum initially aimed to raise approximately $171 million (€150 million) but later resized the fund to $250 million.
AGG Fund touched second close at $138 million earlier in 2023.
New limited partners (LPs) include British International Investment (BII), which committed $16 million earlier in 2024.
Other LPs include the African Development Bank (AfDB), which previously committed $12 million to the fund. AfDB structured this commitment through the Clean Technology Fund (CTF), a platform under the Sustainable Energy Fund for Africa (SEFA), a multi-donor fund managed by AfDB.
Additional LPs include the International Finance Corporation (IFC) and the Nordic Development Fund (NDF). US-based investment firm Calvert Impact Capital is also an LP in the fund.
The fund is anchored by KfW, a Germany-based development financier.
Laurène Aigrain is managing director of Africa Go Green Fund, at Cygnum Capital.
Clemens Calice is the chief executive officer at Cygnum Capital.
Cygnum Capital, formerly known as Lion’s Head Group, was renamed in 2023 following the spin-out of co-founder Christopher Egerton-Warburton. The general partner (GP) retained management of the fund.
Earlier in 2024, Cygnum Capital saw the departure of its head of debt funds, Orli Arav, after four years at the firm.
Domiciled in Luxembourg, AGG Fund has been structured as a Luxembourgish Société d’investissement à capital variable (Sicav) reserved alternative investment fund (Raif).
The vehicle will focus on debt and mezzanine investments in renewable energy projects across Africa. AGG Fund will primarily back companies that mitigate greenhouse gas emissions. The fund’s investment themes focus on domestic and industrial energy solutions, green buildings, e-mobility services, and battery energy storage projects.
Deals backed by the fund include AktivCo, an Africa-focused renewable energy company, completed in 2021.
Other investments include a $5.5 million follow-on debt commitment to Bboxx, an Africa-focused renewable energy company part-owned by African Infrastructure Investment Managers (AIIM), sealed in 2022.
