Swedfund is investing in two leading Africa-based credit funds BluePeak Private Capital Fund (BluePeak) and Vantage Mezzanine Fund IV (Vantage), to increase the availability of long-term growth capital for mid-sized companies and support the upscalling of businesses on the continent.
The firm said strengthening the growth and resilience of small and medium enterprises (SMEs) and mid-sized companies is crucial for employment generation and local economic development.
The firm said it will lead to significant job creation as well as increased access to essential goods and services, such as medicines and connectivity and communications services.
“The Funds play an important role in providing companies with tailored financing, which will enable them to focus on growth and creating jobs,” said the Chief Executive, Swedfund, Maria Håkansson.
With these investments, Swedfund expects the effort to close the funding gap for mid-sized companies.
“We are also looking forward to work closely with the fund managers in advancing their strategies on increased gender equality, both at the Fund level as well as in their respective portfolio companies,” Maria Håkansson said.
BluePeak is a sector-agnostic Pan-African fund investing throughout the capital structure to tailor long term capital solutions designed to support a company’s growth plans and generate positive and economic impact.
BluePeak’s financing solutions bring potential for large scale impact to SMEs and mid-market companies with a specific commitment to gender lens investing, inequalities reduction, and climate mitigation.
BluePeak is 2X Challenge qualified on the basis of its work and further commitments to accelerate women’s economic empowerment and promotes gender equality both at BluePeak and within its investee companies. Swedfund commits US$20 to BluePeak.
Vantage is the largest and one of the most experienced mezzanine investors on the African continent focusing on high-growth, mid-market businesses.
Vantage invests sector-wide, but with some prioritized sectors with expected positive impact on communities, such as ICT, healthcare and infrastructure. Swedfund commits US$25 million to Vantage.