Investisseurs & Partenaires Examines African SME Fund Challenges

Funding | Jan 28, 2025 | Investisseurs & Partenaires

The latest publication from Investisseurs & Partenaires (I&P), sponsored by the Argidius Foundation, titled 'How Can African SME Funds Mobilize More Capital?' presents a comprehensive analysis of the African SME fund landscape. It investigates fund models, return profiles, and the dynamics between limited partners (LPs) and general partners (GPs). The research is based on extensive data analysis from over 135 SME funds and stakeholder interviews. The report reveals a growing SME fund ecosystem within Africa, despite being challenged by high transaction costs, liquidity issues, and macroeconomic risks. Findings indicate that since 2015, SME funds launched are offering promising returns, and fund managers are adopting innovative solutions to align with investor needs. The publication suggests that enhanced collaboration is crucial for future research and understanding the SME investment performance in Africa.

Sectors

Private Equity
Venture Capital
Investment Fund Management

Geography

Africa – The article specifically discusses the SME fund landscape across Africa.

Industry

Private Equity – Relevant as the article discusses African SME funds which fall under the private equity industry.
Venture Capital – The article addresses SME funds, often involving early-stage investments, typical of venture capital activities.
Investment Fund Management – The core focus of the article is on the management and strategic direction of SME funds.

Financials

Participants

Name	Role	Type	Description
Investisseurs & Partenaires (I&P)	Research Conducting Body	Company	A firm providing insights into the African SME funds landscape.
Argidius Foundation	Sponsor	Charity	The foundation supporting the report, inspired by Catholic Social Teaching and part of a global philanthropic organization.
SME Funds	Target	Company	The focus of the report, analyzing their performance and fundraising strategies.