This new multi sector private equity fund will focus on inclusive growth and sustainable development in Africa.
Goodwell Investments, a leading impact investment firm, announced the launch of a new $60 million fund called ‘Goodwell V’. This new multi sector private equity fund will focus on inclusive growth and sustainable development in Africa. Goodwell V will channel capital from family offices, private investors and foundations to rapidly-expanding, highly-scalable small and medium-sized companies (SMEs).
This private equity fund is the foundational feeder for a new institutional fund that is scheduled to launch in the second half of 2021. Goodwell’s local teams in Nigeria, Kenya and South Africa have invested more than twenty times in Africa in the past five years, making substantial social impact while delivering investors a market rate of return. Some of the funds will be allocated for follow-on funding to existing companies in their portfolio including Copia, Good Nature Agro and MFS Africa.
“We are convinced that businesses led by local entrepreneurs are the key drivers of inclusive growth in Africa,” Goodwell Director of Communications Nico Blaauw said. “Therefore, the path to inclusive growth in Africa is to support early-stage companies who are best positioned to solve critical challenges in their communities. Our portfolio companies are showing average revenue growth of over 50 per cent per annum.”
Africa’s growing youth population coupled with rapid urbanization and improving business environments is contributing to increased purchasing power and increasing household consumption predicted to reach $2.5 trillion by 2030. Although investment in African startups increased from $400 million in 2015 to $2 billion in 2019 capital invested in early and growth-stage businesses is steadily doubling every year, the continent receives only 2% of global private equity.