BII Backs Alterra’s USD 400M Fund To Help Scale Africa’s High-Growth Businesses

Africa’s economic growth is accelerating, yet many promising businesses still struggle to access the capital needed to scale.

To help bridge this gap, UK development finance institution and impact investor, British International Investment (BII), has committed USD 20 M to the Alterra Africa Accelerator Fund (AAA Fund), a private equity fund focused on driving financial inclusion, digital transformation, job creation, and women’s empowerment across Africa.

Managed by Alterra Capital Partners, an Africa-focused private equity firm, the AAA Fund is targeting a total raise of USD 400 M to support transformative businesses in high-growth sectors.

By investing in companies that provide essential goods, services, and business solutions—primarily in East and Southern Africa—the fund is positioned to drive sustainable development while delivering strong returns. BII’s investment is expected to further support AAA Fund’s capital deployment into a diversified portfolio of impactful businesses.

But it isn’t only BII that has recognized the fund’s potential for impact, other global investors have continued to back its mission. Since the first close of the AAA Fund at USD 140 M in 2023, it has continued to attract capital from major global investors and financial institutions including Norfund AS, Standard Bank Group, International Finance Corporation (IFC), Allianz SE’s AfricaGrow Fund, and private equity veterans David Rubenstein and Bill Conway, co-founders of Carlyle.

Beyond financial backing, the AAA Fund is also driving inclusion. The AAA Fund qualifies as a 2X Investment in 2023 under the 2X Challenge, of which BII is a founding member. As part of this, Alterra has committed for all of its portfolio investments to align with at least one of the 2X Criteria over the life of the Fund. This will be achieved through Alterra’s proactive approach to working with investees on gender value-added opportunities. 

For Alterra Capital Partners, BII’s commitment marks a significant milestone. Alterra was formed in 2020 when the Carlyle Africa team spun out, later integrating the Anglophone team of Emerging Capital Partners. With more than 100 years of combined private equity experience and a track record of investing USD 1.9 B into 20 companies across Africa, the Alterra team has deep expertise in backing businesses that serve fundamental consumer and business needs.

For BII, this investment aligns with its strategy of channelling capital into businesses that strengthen Africa’s economies. “We are delighted to work with Alterra’s experienced team to empower businesses that drive growth in Africa’s emerging economies,” said Sara Taylor, Head of PE Funds and Co-Investments at BII. “Our investment ensures capital reaches a diverse range of companies, fostering productive, sustainable, and inclusive development.”

Geneveive Sangudi, Partner at Alterra, echoed this sentiment: “BII’s commitment adds invaluable credibility and resources to our strategy of advancing sustainable and inclusive growth in Africa. This investment will accelerate our efforts to support transformative businesses, particularly in high-growth sectors that are essential to Africa’s economic future.”

With strong institutional backing and a focus on scaling businesses that directly impact millions of lives, the AAA Fund is poised to provide long-term support to businesses that are essential to Africa’s economic progress.