The Board of Directors of the African Development Bank Group has approved an USD 11 M equity investment in BluePeak Private Capital Fund toward its USD 155 M target for final close. The investment advances the Bank’s goal of supporting mid-size firms, including in the pharmaceuticals, agribusiness, manufacturing, and logistics sectors, across Africa.

BluePeak, a flagship  private capital fund domiciled in Luxembourg, will provide growth capital to middle-sized companies with the potential to become pan African market leaders. The Fund will target adding value to portfolio companies by enabling their expansion, recapitalization, and deleveraging. It is expected to make at least eight investments of USD 8 M to USD 25 M in companies with established cash flow generation.

BluePeak’s current pipeline of investments comprises 22% agri-business, 22% manufacturing and packaging, 12% pharmaceuticals, 12% fintech and financial services, and 11% each in information technology and telecommunication, logistics, and commercial real estate. BluePeak is expected to attract investment from other development finance institutions.

By investing in BluePeak, the African Development Bank will support an indigenous fund manager with a strong knowledge of African markets to invest in underserved small and mid-size companies. As seven of the portfolio firms operate in rural areas, the investment will also serve women and other vulnerable members of communities, particularly in agribusiness. In addition, it will also advance the Bank’s strategy to develop Africa’s pharmaceutical manufacturing capabilities continent-wide.