(Ecofin Agency) - Three months after Finnish development bank Finnfund committed $26 million to ADP III, Denmark's IFU also announced an investment in the vehicle.

The Danish development finance institution (IFU) has approved a $15 million investment in African Development Partners III (ADP III), a private equity fund that focuses on growth companies, primarily those serving the emerging middle class in Africa. This investment will enable Development Partners International's (DPI) third fund to support Africa’s post-Covid recovery.

"With our investment in ADP III, we are participating alongside several other development finance institutions in mitigating the negative effects of the pandemic on the African continent," said Lars Krogsgaard (pictured), IFU's director of investments. This funding comes three months after the Finnish development finance agency's participation. In April, Finnfund committed $26 million to ADPIII to back African consumer-oriented companies.

The vehicle dedicated to the financing of SMEs and mid-sized companies (MSEs) aims to invest $40-120 million in 8 to 14 companies focused on the provision of essential goods and services on the continent. To date, it has made three investments in the financial services, food and health sectors.

Development Partners International is a London-based private equity firm with an asset portfolio of over $2 billion under management and investments in 29 countries.

Chamberline Moko