Grace Ashiru
Investisseurs & Partenaires (I&P) announced on Tuesday that it has successfully reached a first close of 41 million euros ($47.7 million) for its new fund, I&P Afrique Entrepreneurs 3 (IPAE 3).
The fund is targeting a final size of 70 million euros, with a second close anticipated in the second half of 2026. In the meantime, I&P will continue its due diligence and engage in discussions with potential new investors.
The investments will primarily focus on West Africa and Madagascar, regions where I&P has had local teams for several years. This on-the-ground presence enables close monitoring of portfolio companies, direct access to management, and in-depth knowledge of local markets.
The fund plans to invest in 15 to 20 SMEs, making minority equity or quasi-equity investments ranging from 1 million to 5 million euros. Sectors of interest include education, healthcare, energy, agriculture and agro-industry, financial services, logistics, and manufacturing.
Additionally, IPAE 3 includes a 1.2 million euro technical assistance facility to cover operational needs, ESG audits, climate assessments, and training. The aim is to enhance the operational performance of portfolio SMEs and support them in achieving their growth objectives.
This new fund continues the model established by IPAE 1 in 2012 and IPAE 2 in 2017. These previous funds invested a total of 146 million euros in 56 SMEs, with 68% of the investments directed toward least-developed or fragile countries. They also completed 17 exits. The funds address the “missing middle” financing gap that affects African SMEs—businesses that are too large for venture capital but too small for traditional private equity and often require hands-on support.
IPAE 3 follows an impact strategy with two key pillars: gender, aiming for 30% of the portfolio to be led by women entrepreneurs, and climate, with rigorous due diligence and action plans for each company to monitor emissions and achieve at least a 15% decoupling between revenue growth and emissions.
Investors participating in the first close include the European Investment Bank (EIB), BOAD, Bpifrance, and Proparco through its FISEA initiative. FISEA is providing a 7 million euro junior tranche to improve the fund’s risk profile and attract further institutional investors.
