Africa-focussed alternative asset management firm BluePeak Private Capital has announced the first close of its maiden $200 million credit fund at $115 million.
BluePeak said in a statement its flagship fund’s initial closing is backed by several African investors who have come on board as limited partners (LPs). These include the CDC Group, the UK’s development finance institution and impact investor; the European Investment Bank, the European Union’s bank; the US International Development Finance Corporation; FMO, the Dutch development bank; and CDC Tunisia.
First close is a fundraising milestone after which alternative investment firms start deploying the capital.
BluePeak said the fund will make investments of $10 million to $25 million each throughout its 10-year life.
“The fund will provide bespoke financing solutions to small and mid-market companies and private equity sponsors operating in Africa that generate revenues between $10 million and $80 million and operate in growth sectors that are non-cyclical in nature, have strong management teams and a good track record of financial performance,” BluePeak said in its statement announcing the first close.
BluePeak was set up in 2019 by three former Gulf Capital executives—Walid Cherif, Adam Hadidi and Rami Matar. It will provide African small and medium enterprises (SMEs) with bespoke debt financing—a model in which the lender works actively with the borrowers to ascertain the best way their credit could help the latter grow their business.
BluePeak currently has offices in Tunis, the Nigerian capital Lagos and in London. It will soon open a new office in Nairobi, The Capital Quest previously reported. BluePeak has been evaluating 17 companies across north, west and east Africa, and will likely deploy 35-40% of the money raised so far, by the end of the calendar year.
BluePeak joins at least two other alternative investment firms in raising a credit fund for Africa. Vantage Capital’s Africa mezzanine fund marked its first close in July while Cape Town-based private investment firm Greenpoint Capital is in the market to raise $100 million for a new special situations credit fund.