Investment companies & funds
Focusing on Africa, impact and collaboration
In 2023, the private equity team invested a total of EUR 56.2 million in eight projects in Africa, Asia, and Latin America. Building on the arrival of a new manager and the momentum of the new management contract, BIO's private equity department is poised for a significant expansion in 2024. The team will focus on increased investment, social and environmental impact, and collaborative partnerships.
Scaling up investment
The Private Equity department’s target for new investments in 2024 is EUR 85 million, marking a clear commitment to this asset class. This allocation is further divided to reflect strategic priorities:
- EUR 40 million: Investments in private equity funds
- EUR 30 million: Direct investments in companies
- EUR 15 million: Investments categorised under "code 5"
Investing for Impact
The private equity team prioritises investments that generate positive social and environmental outcomes, with key focus areas including:
- Job creation – fuelling economic growth and opportunity.
- Supporting SMEs – empowering local businesses to thrive.
- Climate change mitigation and adaptation – promoting sustainable practices and resilience.
- Promoting gender equality – fostering inclusive development.
Africa takes centre stage
Recognising the continent's vast potential, BIO prioritises Africa for new investments. The target is to allocate at least 45% (ideally 50%) of the EUR 85 million specifically to African ventures. This focus extends to Least Developed Countries (LDCs), many of which are located in Africa.
Expanding Investment Strategies
BIO's private equity toolbox will see some exciting additions:
- Fund Investments: BIO will continue to invest in both generalist and thematic private equity funds to foster a robust investment ecosystem.
- Direct Investments: A noteworthy shift involves expanding direct investments beyond financial institutions to include non-financial institutions, particularly in the agricultural sector. This broadens BIO's reach and impact.
- Co-investments: For the next two years, BIO will prioritise co-investing in direct equity deals alongside other development finance institutions. This collaborative approach streamlines due diligence and leverages combined expertise.
Beyond the Transaction
BIO is moving beyond a purely transactional approach towards a more holistic perspective:
- Impact Assessment: Investments will be evaluated not only on their individual merits but also on their broader impact on the entire portfolio, ensuring a cohesive and impactful strategy.
- Active Ownership: There's a renewed emphasis on actively engaging with portfolio companies to promote best practices and maximise positive outcomes. This ensures companies deliver not just financial returns, but also contribute to broader development goals.
Mobilising Private Capital
BIO remains committed to its catalytic role, aiming to reignite private sector investment alongside its own contributions. This collaborative approach fosters broader development efforts.
2023 investments in investment companies and funds
BIO has granted EUR 150,000 to the technical assistance facility of Adenia Capital IV, a PE fund focused on Sub-Saharan Africa
BIO has invested EUR 10 M in the Afrigreen Debt Impact Fund, a private equity fund focused on solar renewable energy in Sub Saharan Africa.
BIO has granted EUR 200,000 to the technical assistance facility of the Agri-Vie Fund II, a specialized food & agribusiness investment fund active in Sub-Sahara Africa.
BIO has invested USD 5 M in equity in Alterfin, a Belgian financial cooperative
BIO has granted EUR 21.5 K of technical assistance to Alterfin, a Belgian financial cooperative
BIO has invested USD 10 M in equity in the Darby International Capital Latin American Fund IV, a closed-end private credit fund focusing on Latin America.
BIO has granted USD 250,000 to the technical assistance facility of EcoEnterprises Partners III, a gender-smart venture fund focused on Latin America.
BIO has granted a USD 12 M loan to Locfund Next, an open-ended fund aimed at providing local currency financing to MFIs in the LAC region.
BIO has granted a USD 6 M loan to the Metier Capital Growth Fund III, a PE Fund focused on sub-Saharan Africa.
BIO has invested USD 5 M in equity in the Omnivore Agritech & Climate Sustainability Fund III, an Indian VC fund specialized in the Agritech sector
BIo has granted a USD 10 M loan to the SIMA Commercial & Industrial Solar Green Bond, a close-ended debt fund with a focus on C&I projects in Africa
BIO has invested USD 10 M in equity in the South Asia Growth Fund III, an SME fund focused on South-East Asia
BIO has granted USD 350 K to the technical assistance facility of the Spark + Africa Fund, an impact investment fund aiming to develop and scale an inclusive and sustainable clean cooking industry.
BIO has invested USD 7 M in the SUSI Asia Energy Transition Fund, a private equity infrastructure fund focused on Southeast Asia.