Zambian Private Equity Fund Secures $100 Million in Initial Funding

Monter Capital Partners, based in Port Louis, successfully concludes the initial funding round of $100 million for its flagship fund, marking a significant milestone for the Zambian private equity sector. The fund, domiciled in Mauritius but operating across Sub-Saharan Africa, focuses on fostering the growth of companies in key sectors including financial services, clean energy, and agri-business.

This achievement not only sets a record for the highest amount ever raised by a Zambian private equity firm, but it also establishes a precedent with regulators, paving the way for other financial services firms to adopt similar structures. Brian Malambo, the founder of Monter Capital, highlights that their innovative fund structure fills a legal void that previously existed in Zambia, enabling them to invest in a more adaptable and flexible manner.

“The interesting part of what we’re doing is that we want to target special asset classes to support the primary classes […] from the financial services side, where we see opportunities in the tech space that help deliver fintech products, we can also tap into those as a secondary asset class,” Malambo says.

Monter initially set up the structure in Mauritius and then sought authorisation to operate in Zambia through the country’s Securities and Exchange Commission. The fund was granted approval on the 31st May and therefore became the first such fund established in Zambia.

Brian Malambo, anticipates a ripple effect in the Zambian financial services landscape as other firms take notice of their pioneering “alternate approach.” Having successfully obtained authorization for their unique fund structure, Monter Capital stands as the trailblazer in this regard. Malambo believes that the impressive capital raised by their fund will serve as a catalyst, motivating other financial services firms to explore similar avenues of investment.

“It’s always the case that when people see something good coming along, they want to follow suit, so we do expect a number of other players to follow suit and come up with similar products for the development of the country.”

Amidst a global downturn in private equity investments, Monter Capital’s successful first-round raise of $100 million comes at a critical time for the industry, both in Africa and worldwide. The Global Private Capital Association reports a significant 22% decline in private investment in emerging markets in 2022, influenced by factors such as rising interest rates in the US and local challenges like sovereign debt issues.

With a strategic focus on South Africa, Botswana, Namibia, Zambia, Malawi, Kenya, Rwanda, Ghana, and Senegal, Monter Capital aims to allocate the funds to support targeted businesses. Beyond financial backing, the firm intends to provide vital technical support, strengthen corporate governance practices, and enhance executive teams.

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