Grace Ashiru
CardinalStone Capital Advisers, a Nigerian fund manager, plans to allocate the proceeds from its second fund to high-growth small and medium-sized enterprises (SMEs) across Nigeria, Ghana, and Francophone West Africa, including Ivory Coast and Senegal.
The firm is preparing to launch a new investment vehicle focused on SMEs in West Africa. Named CardinalStone Capital Advisers Growth Fund II (CCAGF II), the fund has a target of $120 million. Its goal is to enhance SME access to capital in a region where private equity markets are still underdeveloped.
While the fund will concentrate its investments in Nigeria and Ghana, it will also expand into Francophone West Africa, particularly Ivory Coast and Senegal. The fund will focus on high-potential companies operating in sectors vital for regional growth, such as consumer goods and services, agribusiness, select industrial segments, and financial services.
To help anchor the fund, the International Finance Corporation (IFC) plans to invest up to $15 million in equity. However, this commitment is subject to approval by the IFC board, with a decision expected on January 12, 2026. This investment is intended to enhance the fund’s credibility and attract additional institutional investors.
The fund will be domiciled in Mauritius and will adopt a generalist investment approach. It plans to invest primarily through equity and equity-linked instruments, along with close operational support. CardinalStone will focus on professionalizing SMEs, enhancing governance, and preparing them for regional expansion. According to data from the Ghana Statistical Service, SMEs account for 92% of businesses and contribute 70% of the GDP.
CCAGF II builds on the success of CardinalStone’s first fund, which closed in 2021 at $64 million, falling short of its initial target. Despite its smaller size, the first fund enabled CardinalStone to structure and support SMEs across multiple sectors, making investments ranging from $5 million to $10 million per deal.
