The International Finance Corporation (IFC), a member of the World Bank Group, is considering a potential equity investment of up to $25 million in Virunga Africa Fund II, a planned $500 million growth equity vehicle targeting mid- to large-cap African companies in sectors including healthcare, education, digital infrastructure, financial services, and consumer goods.
The fund will be managed by Admaius Capital Partners, an African-owned private equity firm founded in 2021 and headquartered in Kigali, Rwanda, according to project documents seen by DevFiNews.com.
Virunga Africa Fund II aims to build a portfolio of 10 to 12 companies, with target investment sizes ranging from $15 million to $50 million.
IFC’s proposed commitment would be capped at 20% of total commitments and includes a co-investment envelope of up to $10 million.
“IFC’s equity commitment and co-investment envelope will also help mobilize capital from private investors at the second close, enabling the Fund to reach its final target size,” IFC said.
ALSO READ: IFC plans first Philippine SME securitisation with $110m First Circle facility
Private equity fundraising across Africa has remained challenging amid higher global interest rates and weaker investor appetite for emerging markets.
African mid-market companies continue to face limited access to long-term growth capital, particularly in development-linked sectors.
IFC said the fund is expected to expand access to equity financing for companies operating in sectors with strong development impact potential, including healthcare, education, and financial inclusion.
The institution also said the fund’s successful fundraising and deployment could help strengthen competition in Africa’s private equity market.
Admaius currently manages Virunga Africa Fund I, a 2022-vintage fund with $280 million in commitments and investments in eight companies across the continent.
The fund excludes investments in coal-related activities, K-12 education, non-RSPO palm oil, high-risk financial institutions, and Category A activities under IFC’s environmental and social framework.