Investisseurs & Partenaires (I&P) has successfully completed the first close of its new fund, I&P Afrique Entrepreneurs 3 (IPAE 3), raising €41 million (equivalent to $47.7 million). This new fund is designed to finance and support the “missing middle” segment of African Small and Medium Enterprises (SMEs).
Key Financial Targets and Timeline
| Metric | Target / Status | Details |
| First Close Amount | €41 million ($47.7 million) | Achieved on Tuesday. |
| Final Target Size | €70 million | The total expected size of the fund. |
| Second Close | H2 2026 | Expected timeline for the final close. |
| Technical Assistance Facility | €1.2 million | Dedicated funds for operational, ESG, and training support. |
| Investment Size (Ticket) | €1 million to €5 million | Minority equity or quasi-equity stakes per SME. |
| Number of Investments | 15 to 20 SMEs | The target portfolio size. |
Geographic and Sector Focus
The fund will strategically focus its investments in two core regions where I&P has established local teams, allowing for hands-on management and market knowledge:
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West Africa
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Madagascar
The investment strategy is intentionally diversified across sectors considered essential for economic and social development:
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Education
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Health
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Energy
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Agriculture and Agro-industry
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Financial Services (Fintech)
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Logistics and Industry
Impact Strategy and Key Pillars
IPAE 3 incorporates an ambitious impact strategy centered on two measurable pillars:
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Gender:
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Target: The fund aims for at least 30% of the portfolio companies to be led by women entrepreneurs. The entire portfolio will align with the global 2X Challenge standards for gender-lens investing.
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Climate:
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Action Plan: Systematic ESG/climate due diligence and action plans will be mandatory for every portfolio company.
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Goal: To achieve at least a 15% decoupling between revenue growth and carbon emissions (meaning revenue grows 15% faster than emissions).
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Addressing the “Missing Middle”
The fund is a continuation of the model established by its predecessors, IPAE 1 (2012) and IPAE 2 (2017), which collectively invested €146 million in 56 SMEs and completed 17 exits.
IPAE 3 is designed to bridge the persistent “missing middle” financing gap in Africa. This gap affects SMEs that are:
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Too large for microfinance or early-stage venture capital.
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Too small for traditional private equity firms (which typically look for larger ticket sizes).
I&P provides the hands-on, long-term minority equity or quasi-equity capital these growth companies need. Historically, 68% of the portfolio companies in previous IPAE funds were located in least-developed or fragile countries.
Investors in the First Close
The first close was backed by a consortium of major development finance institutions (DFIs), demonstrating confidence in I&P’s model:
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European Investment Bank (EIB)
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BOAD (West African Development Bank)
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Bpifrance
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Proparco (via its FISEA initiative)
Notably, Proparco’s FISEA initiative provided a €7 million junior tranche, which is structured to take a first loss. This catalytic capital enhances the fund’s risk profile to make it more attractive to subsequent institutional investors.
