(Ecofin Agency) - This is the first close of this fund managed by investment bank Lion's Head and advised by E3 Capital. The funds raised will be invested in companies focused on renewable energy, climate, and digitalization in Sub-Saharan Africa.
Luxembourg-domiciled E3 Low Carbon Economy Fund for Africa (E3LCEF), which focuses on financing start-ups and SMEs involved in the renewable energy, climate, and digitalization sectors in sub-Saharan Africa, has achieved its first closing at $48.1 million. The information was reported on Monday, May 22 by the investment bank Lion's Head Global Partners, manager of E3LCEF.
The venture capital fund will invest between $500,000 and $1 million in companies active in the areas mentioned above. E3 Low Carbon Economy Fund for Africa will target Sub-Saharan Africa, specifically Kenya, South Africa, Ghana, and Nigeria.
"The fund will invest in early-stage companies and hold significant capital for later rounds," said Lion's Head, manager of the fund, and E3 Capital, investment advisor to the fund.
The $48.1 million obtained by E3LCEF was raised from several development financial institutions, such as FMO, Proparco, kfW, and Swedfund. It will allow recipient companies to grow and develop their activities, allowing the fund to build a diversified portfolio in Africa.
To date, E3 Capital and Lion's Head have invested over $400 million in 30 African countries.
After this first closing, E3 Low Carbon Economy Fund for Africa plans to proceed with the final closing, at $100 million, within the next 12 months.