I&P Développement 1 (IPDEV1), Investisseurs & Partenaires’ fund launched in 2002, has realized two new exits in Mauritania and in Senegal.
With these new exits, the fund records close to 20 exits and demonstrates the viability of I&P impact investment model.
Sébastien Boyé, CIO at I&P, said that IPDEV1’s disinvestment phase should be achieved by 2019.
“It was maybe true that secondary buyouts and trade sales were difficult in the African SME investing space, but this idea is now out of date,” he said.
“For example, out of the 20 exits IPDEV realized, 7 were management buyouts. In the other case, I&P’s stake was sold to third parties such as investment funds, suppliers, customers or industrial players,” he added.
In Senegal, the fund has exited Duopharm, an independent company specialized in the distribution of pharmaceutical products, launched under the initiative of 150 pharmacists.
IPDEV worked with Duopharm since its creation.
In a few years Duopharm achieved a breakthrough in the Senegalese pharmaceutical landscape, counting about 320 shareholders, and close to 5,000 references.
IPDEV said it will sell its shares to the pharmacists, who founded the company over the coming months.
In Mauritania, the fund has sold CDS, which provides water and energy access to rural and underserved communities.
The company has provided access to water or electricity services to over 30,000 people and has emerged as one of the leaders in the field of renewable energy, developing a complete range of photovoltaic and solar products.
In partnership with CDS’ promoter, Sidi Khalifou, IPDEV is selling its shares to Engie Rassembleurs d’Energies and the Monaco-based impact firm SADEV.
Both these partners will continue to support CDS in its development strategy and impact objectives.
In its ten years of operation, IPDEV1 has invested €11m in 33 startups and small businesses in Sub-Saharan Africa.
The companies in portfolio continue to show a solid performance, with an average growth rate of the turnover of 16 in 2015.
Their impact on local development has been significant, including notably the creation of 1,300 jobs, the support of 7,000 smallholders and local suppliers and the implementation of paid maternity leave for 80% of the companies in portfolio.
These exits are in line with the investment and impact strategy of Investisseurs & Partenaires, which invests as a minority shareholder and aims to maximize the social impacts of the companies in portfolio on local development. Source: Africa Global Funds