• I&P closes €41m for IPAE 3, targeting €70m by 2026

• Fund will invest €1-5m in 15-20 SMEs across West Africa and Madagascar

• IPAE 3 adds impact focus on gender and climate with technical support
  

Investisseurs & Partenaires (I&P) said on Tuesday that it has held a first close at 41 million euros (47.7 million dollars) for its new fund, I&P Afrique Entrepreneurs 3 (IPAE 3).

The fund is targeting a final size of 70 million euros, with a second close expected in the second half of 2026. Until then, I&P will continue due diligence and discussions with potential new investors.

Investments will focus on West Africa and Madagascar, where I&P has maintained local teams for several years. This on-the-ground presence allows for close monitoring of portfolio companies, direct access to management and strong knowledge of local markets.

The fund plans to invest in 15 to 20 SMEs through minority equity or quasi-equity stakes ranging from 1 million to 5 million euros. Target sectors include education, health, energy, agriculture and agro-industry, financial services, logistics and industry.

IPAE 3 also includes a 1.2 million euro technical assistance facility to finance operational needs, ESG audits, climate assessments and training. The goal is to improve the operational performance of portfolio SMEs and help them reach their growth objectives.

The new fund continues the model developed under IPAE 1 in 2012 and IPAE 2 in 2017. These vehicles invested 146 million euros in 56 SMEs, 68 percent of them in least-developed or fragile countries, and completed 17 exits. They address the persistent financing gap known as the "missing middle," which affects African SMEs that are too large for venture capital but too small for traditional private equity and often require hands-on support.

IPAE 3 adopts an impact strategy centered on two pillars: gender, with a target of 30 percent women entrepreneurs in the portfolio, and climate, with systematic due diligence and action plans for every company to track emissions and achieve at least a 15 percent decoupling between revenue growth and emissions.

Investors in the fund's first close include the European Investment Bank (EIB), BOAD, Bpifrance and Proparco through its FISEA initiative. FISEA is providing a 7 million euro junior tranche intended to enhance the fund's risk profile and attract additional institutional investors.

Chamberline Moko