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BluePeak Private Capital raises $115m for flagship fund

BluePeak Private Capital, an alternative investment firm with a focus on Africa, announced Tuesday that it has raised capital of $115 million for the initial closing of its flagship private credit and mezzanine fund, BluePeak Private Capital Fund.

The Fund targets a final close of US$200 million, with a hard cap of US$250 million.

“I am particularly delighted and pleased to have reached this important milestone for BluePeak,” said Walid Cherif, co-founder and Managing Director of BluePeak Private Capital.

It’s quite an achievement for a firm that was launched less than 2 years ago,” said Cherif, who added that the quality of investors who supported the firm and led the first close of the flagship fund is a testament to the strong experience and operational setup of BluePeak and its team.

The Fund’s initial closing is backed by leading African investors including CDC Group, the UK’s development finance institution and impact investor; the European Investment Bank, the European Union’s bank, DFC, the US Development Finance Corporation, FMO, the Dutch entrepreneurial development bank and the “Caisse des Dépôts et Consignations” CDC Tunisia.

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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.

As well as a strong focus on the ESG in every investment, BluePeak will also proactively identify areas where positive impacts can be achieved.

“SMEs in Africa are still facing financing challenges despite their critical role in the growth and stability of African economies,” Adam Hadidi, co-founder and Managing Director of BluePeak Private Capital said.

The Covid-19 crisis made the needs more substantial and the opportunity to support great businesses undeniable, according to Hadidi.

“Asset-light companies which operate in attractive sectors still find it difficult to obtain financing from the traditional credit markets, even when they have a good track record of financial performance and numerous opportunities for growth,” Hadidi said.

He added that “BluePeak was founded to fill this market gap and provide growth capital through a variety of bespoke debt instruments, including mezzanine finance, preferred equity, convertibles and senior debt for companies operating in Africa and the Levant region.”

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